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Pharma/fine chemicals roundup—13 August 2013
3:38 AM MDT | August 13, 2013 | By DEEPTI RAMESH
Ampac Fine Chemicals reports rise in profits and sales
Ampac Fine Chemicals (AFC; Rancho Cordova, CA), a subsidiary of American Pacific (Las Vegas), reports an 11.5% rise in operating profits for its fiscal third quarter ended 30 June 2013, compared with the year-ago period, to $5.8 million. Third-quarter sales increased 21.4%, to $44.2 million. For the nine-month period, ended 30 June, AFC reports a nearly four-fold increase in operating profits, compared with the first nine months of the previous fiscal year, to $10.8 million. Nine-month sales increased 31.1%, to $102.8 million. The increase in revenues for the third quarter is primarily due to an increase in development product revenues which included the completion of a validation campaign for an anti-viral product that is in the late stages of its clinical trials, AFC says.
ScinoPharm and Sundia establish alliance for contract research and manufacturing in China
Active pharmaceutical ingredients (APIs) manufacturer ScinoPharm Taiwan (Shanhua, Taiwan) says its ScinoPharm Changshu Pharmaceuticals (Changshu, China) subsidiary has entered into a strategic alliance with clinical research firm Sundia MediTech (Shanghai), to explore opportunities for collaboration in contract research and manufacturing services (Crams) in mainland China. The cooperation combines Sundia's technical know-how and capabilities in new drug R&D with ScinoPharm's process R&D and commercial production advantages, especially in the field of highly potent oncological APIs, ScinoPharm says. Both companies, under the alliance, will be able to support customer needs with one-stop solutions for integrated services, such as drug development, research, clinical trials, and commercial manufacturing. China is one of the most preferred Crams destinations in Asia and is likely to witness substantial growth, ScinoPharm says.
Codexis net loss widens
Codexis (Redwood City, CA), a company that engineers enzymes for pharmaceutical, biofuel, and chemical production, reports a net loss of $12.60 million in the second quarter of 2013, compared with a net loss of $5.51 million in the year-ago quarter. Second-quarter sales decreased 69.5%, compared with the year-ago period, to $6.97 million. Codexis says that, as a result of the termination of its collaborative research agreement with Shell in August 2012 and the resulting loss of associated collaborative R&D revenue, year-on-year comparisons for its first three quarters of 2013 are not an appropriate measure of the company’s financial performance. Codexis recorded a net loss of $9.62 million and sales of $11.48 million in the first quarter of 2013. Product revenue in the second quarter of 2013 was $5 million, a decrease from $9.1 million in the first quarter of 2013, primarily due to weakness in the company’s atorvastatin business, Codexis says.
Excipients demand rises
The demand for oral solid dosage forms (OSDF) excipients was 93,800 m.t. in 2011 and is expected to reach 126,800 m.t. in 2018, says a recent report by Transparency Market Research. In terms of revenue, the market was valued at $570.6 million in 2011 and is expected to reach $869.1 million in 2018, the report says. And the overall demand for pharmaceutical excipients was 519,500 m.t. in 2011 and is expected to increase to 685,600 m.t. in 2018. Consumption of total pharmaceutical excipients was highest in Europe, accounting for about 160,000 m.t. in 2011; demand for OSDF excipients was also highest in Europe, accounting for over 30% of the total volume in 2011, the report says. The demand for total pharmaceutical and OSDF excipients in the future is expected to be more from the Asia/Pacific region.
China to complete drug administration system reforms this year
The Chinese government says that it will complete its reform of the food and drug administration systems by the end of 2013, to ensure food and drug safety. The China Food and Drug Administration (CFDA; Beijing), the new and stronger food and drug safety watchdog that became operational earlier this year, will help create a unified supervision and management system by the end of this year, that will include central and local-level food and drug administration systems across the country. Nearly 10 provincial regions in China have already completed these reforms.
Indian pharma firm Aurobindo to spinoff unit, makes 2 acquisitions
The board of directors of Indian pharmaceuticals producer Aurobindo Pharma (Hyderabad) has approved a proposal to evaluate the spinoff of its injectable pharma business into a wholly owned subsidiary and to look for strategic alliances. Aurobindo Pharma currently manufactures injectables at 2 facilities located near Hyderabad. The board has also approved a proposal to acquire 60% in Celon Laboratories' (Hyderabad) manufacturing facility currently under construction for 156 million Indian rupee ($2.6 million). The facility will produce hormonal and oncology products. The company will in addition invest Rs323 million in the facility in the next year to develop new products in the 2 segments. Aurobindo has also decided to acquire a 57% stake in Silicon Life Sciences Private Ltd., its joint venture with local shareholders. Silicon is a producer of non-sterile carbapenems, a class of beta-lactam antibiotics. Aurobindo’s stake in Silicon will rise to 75%.
Ranbaxy’s API business reports rise in sales
The active pharmaceutical ingredient (API) business of Ranbaxy Laboratories (Gurgaon, India) reports sales of 2.26 billion Indian rupees ($37 million) in the second quarter, ended 30 June, compared with sales of Rs1.66 billion in the year-ago quarter. Profits for the API business were not disclosed.