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Pharma/Fine Chemicals Roundup – July 31
9:36 AM MDT | July 31, 2012 | By DEEPTI RAMESH AND SOTIRIOS FRANTZANAS
LONZA REPORTS FALL IN FIRST-HALF PROFITS
Lonza recorded a 3.1% fall in first-half profits compared with the year-ago period, to SF94 million ($94.5 million). First-half sales increased, however, by 64.6%, to SF1.96 billion, mainly due to the acquisition of biocides maker Arch Chemicals (Norwalk, CT), which was completed last October, for $1.4 billion, Lonza says. EBIT for the first half increased by 23.5%, to SF168 million.
U.S. FDA LIFTS IMPORT ALERT ON DR. REDDY’S API FACILITY IN MEXICO
Pharmaceutical company Dr. Reddy’s Laboratories (Hyderabad, India) says that the U.S. FDA has lifted the import alert on Industrias Químicas Falcon de México, Dr. Reddy’s wholly owned manufacturing facility at Cuernavaca, Mexico. The facility produces intermediates and active pharmaceutical ingredients (APIs). The lifting of the import alert allows Dr. Reddy’s to start importing products into U.S. from this facility. The Cuernavaca facility received a warning letter from the FDA in June 2011, following an FDA inspection of the facility in November 2010. The inspection identified certain deviations from current good manufacturing practices (cGMPs) for the manufacture of APIs.
SAFC REPORTS RISE IN SALES
Sigma-Aldrich Fine Chemicals (SAFC), the custom manufacturing and services business unit of Sigma-Aldrich, reported a 21.8% increase in sales in the second-quarter of 2012 compared with the year-ago period, to $223 million, led by strong demand in custom pharma and Hi-tech businesses. SAFC’s sales grew organically by 8%, Sigma-Aldrich says.
“Second quarter 2012 SAFC sales were $223 million, a new quarterly record. We generated better than expected SAFC organic sales growth of 8%,” says Rakesh Sachdev, president and CEO of Sigma-Aldrich. “We were pleased by the improved performance of our SAFC custom pharma business, which saw solid growth in cGMP-manufactured products in second quarter 2012. Based on the solid first half of 2012 results and visibility for accelerated sales growth, we are reaffirming our guidance for low double-digit organic growth for SAFC sales in the second half of 2012.”
JOHNSON MATTHEY’S FINE CHEMICALS BUSINESS RECORDS FLAT SALES
Johnson Matthey released a management statement saying that in the fiscal first quarter that began on April 1, 2012, its fine chemicals division recorded flat sales at £69 million ($108 million), but the division achieved good growth in operating profit. The API-manufacturing businesses continue to perform well, driven mainly by strong demand for amphetamine salts used for attention deficit hyperactivity disorder treatments, Johnson Matthey says.
BASF INCREASES PRICES FOR ETHANOLAMINES IN EUROPE
BASF says it is increasing its European sales prices for ethanolamines by €70/m.t. with immediate effect or as existing contracts permit. Ethanolamines are intermediates used in the manufacture of agchems and wood protectants, surfactants for detergents and cleaning products, process chemicals for gas treatment, lubricants, cement additives, and APIs. BASF produces ethanolamines at Ludwigshafen, Germany; Antwerp, Belgium; and Nanjing, China.
CRITITECH AND FINOSO PHARMA FORM JV TO PROVIDE API SIZE REDUCTION TECHNOLOGY
CritiTech (Lawrence, KS) says it will form a 50/50 joint venture (jv) with formulation development services company Finoso Pharma (Hyderabad, India). The jv will be named Finotech Pharma (Lawrence), and it will provide alternative API size reduction technology and particle design services to the pharmaceutical industry with associated formulation services to meet R&D and early clinical trial supply needs. These particles are designed to be used in a variety of formulated products that enable the delivery of oral dosage forms, intravenous suspensions, and inhalation products.
CritiTech is a drug development company focused on applying the company’s super critical fluid technology platform to enable the creation of differentiated drug products. CritiTech leverages technical experience to reduce the particle size of APIs, precipitate precise quantities of API into unit dose containers for R&D use, and/or coat the API onto miscellaneous substrates or devices.
“By combining our experience in the domestic and international product development market with CritiTech’s technology and expertise, our clients will receive a higher level of service and new drug delivery options for their products,” says Kumar Kurumaddali, managing director of Finoso Pharma.