IHS Chemical Week


Pharma/Fine Chemicals Roundup – July 12

7:24 AM MDT | July 12, 2011 | By DEEPTI RAMESH


The Asia/Pacific is the third largest regional market for active pharmaceutical ingredients (API) in the world by revenue after North America and Europe and the region is the fastest growing API market in the world, says a recent report by GBI Research. The Asia/Pacific API market grew at a CAGR of 6.7% from 2005 to 2010, and the year-on-year growth rate also increased continuously in this period, GBI says. The region is expected to witness an even higher growth rate until 2016. The Asia/Pacific API market revenues will grow at a CAGR of 9.6% from 2010 to 2016, GBI adds.


Cambrex (East Rutherford, NJ) says it has entered into a development and commercialization agreement with Tillotts Pharma (Rheinfelden, Switzerland), a subsidiary of Zeria Pharmaceutical (Tokyo), for a proprietary mesalamine-based (5-ASA) technology for use in the treatment of inflammatory bowel disease.

The announcement “serves as a prime example of Cambrex's commitment to accelerating our customers' drug development processes by providing technology-added products and services and further underscores our goal to being a leading player in the development and supply of mesalamine-based active ingredients,” says Steven M. Klosk, pesident and CEO of Cambrex.
Tillotts has acquired from Cambrex worldwide exclusive rights to develop and commercialize drug products based on the proprietary 5-ASA-based technology in exchange for developmental, regulatory and IP milestone payments as well as royalties, under the terms of the agreement. Cambrex previously acquired the exclusive rights to this technology from PLx Pharma (Houston, TX).


Hikma Pharmaceuticals (London) says it has acquired a significant minority interest in Hubei Haosun Pharmaceutical through the subscription of new equity for $5 million. Hubei Haosun, a privately held company that develops and manufactures niche, difficult to make active pharmaceutical ingredients (APIs) with a specialization in oncology APIs, is located in the Gedian Economical Development Zone in Hubei province, China. Hubei Haosun operates a U.S. FDA and European Union approved facility and its product portfolio and development pipeline, which covers a range of therapeutic areas, fits well with Hikma’s requirements, Hikma says. The acquisition demonstrates the continuation of Hikma’s strategy of enhancing its API sourcing and research and development capabilities in key product areas. Hikma agreed in April to acquire a minority interest in privately held Unimark Remedies (Mumbai), a manufacturer of API and pharma intermediates, for $33.3 million.
Through the partnership with Hubei Haosun, Hikma gains access to a high quality, long term source of API, particularly in the strategically important area of oncology, Hikma says.


Lonza has agreed to acquire biocides maker Arch Chemicals (Norwalk, CT) in a deal valued at $1.4 billion. Lonza will launch a tender offer for all of Arch’s outstanding shares for $47.20/share in cash. The deal “will allow us to expand our non-pharma life science business to achieve a well balanced profile based on two world leading growth businesses: pharmaceutical contract manufacturing and microbial control,” says Stefan Borgas, CEO of Lonza.
Lonza’s offer represents a 12% premium to Arch's previous closing price on July 8, and a 36.7% premium to its average closing price over the last 30 trading days. Arch had 2010 sales of about $1.4 billion, of which about $1.2 billion were from biocides.
 “This transaction represents an excellent strategic and cultural fit. Lonza and Arch Chemicals offer highly complementary products and technologies, and together will be the global leader in controlling unwanted microbes,” Borgas says. The global biocides market is valued at about $10 billion/year and is growing at 4%-6%/year, Lonza says. The key end-use segments of the market--water treatment, hygiene, materials protection, and personal care--are growing at faster rates, Lonza says.


China’s State Food and Drug Administration (SFDA; Beijing) will establish complaint centers to identify and check illegal food and drug producers and to crack down on the use of illegal additives, the Chinese government says. The SFDA plans to build a telephone network across China over the next five years to respond to public complaints concerning the food and drug sectors.
“To ensure the safety of food and drugs has become an increasingly important, urgent and difficult task for us,” says Shao Mingli, head of SFDA. “Compared with developed countries, China faces more challenges in the food and drug industries mainly due to lack of standards and monitoring.”

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