Pharma/fine chemicals roundup—20 May 2014
6:52 AM MDT | May 20, 2014 | By DEEPTI RAMESH
AstraZeneca rejects Pfizer's latest offer
AstraZeneca has rejected Pfizer's latest offer to buy AstraZeneca. Pfizer says its offer, which values AstraZeneca at £69 billion ($116 billion), is "final" and cannot be improved. "We have rejected Pfizer's final proposal because it is inadequate and would present significant risks for shareholders while also having serious consequences for the company, our employees, and the life sciences sector in the United Kingdom, Sweden, and the United States," says AstraZeneca chairman Leif Johansson. AstraZeneca's £55/share offer consists of £24.76/share in cash plus 1.747 Pfizer shares in exchange for each AstraZeneca share.
API business of Dr. Reddy’s reports fall in sales
The pharmaceutical services and active ingredients (PSAI) business of Dr. Reddy’s Laboratories (Hyderabad, India) reports a 34.7% fall in sales in the company’s fiscal fourth quarter, ended 31 March 2014, compared with the year-ago quarter, to 6.64 billion Indian rupees ($113 million). For the full fiscal year ended 31 March, the PSAI business reports a 21.9% fall in sales compared with the previous fiscal year, to Rs23.97 billion. Earnings figures for the PSAI business have not been disclosed. It was a challenging year for the PSAI business due to lower demand from key customers coupled with fewer product launches compared to the previous fiscal year, Dr. Reddy's says. Europe accounted for about 37% of the company's PSAI sales in the full fiscal year, North America accounted for 18%, India accounted for 16%, and the rest of the world accounted for 29%, Dr. Reddy’s says. During the fiscal year, 61 drug master files (DMF) were filed globally, including 12 in the United States and 13 in Europe, Dr. Reddy’s says. As of 31 March 2014, the cumulative DMF filings were 631.
DSM Fine Chemicals and Relypsa sign API manufacturing agreement
Pharmaceutical company Relypsa (Redwood City, CA) says that it has entered into a multi-year commercial manufacturing and supply agreement with DSM Fine Chemicals for the active pharmaceutical ingredient (API) for patiromer, the company's novel polymer in development for the treatment of hyperkalemia. DSM Fine Chemicals is a business unit of the newly formed DPx Holdings (Durham, NC). Earlier this year, DSM and private equity firm JLL Partners (New York) created DPx Holdings by combining DSM Pharmaceutical Products (Parsippany, NJ), the custom manufacturing and technology business of DSM, with Patheon (Toronto), a portfolio company of JLL.
In addition to DSM Fine Chemicals, Relypsa also has an agreement with Lanxess, for the supply of the API. Both Lanxess and DSM Fine Chemicals have manufactured and supplied API that was used during the company's clinical development program. Relypsa expects Lanxess will be the initial sole manufacturer named in its planned new drug application (NDA). The company plans to submit a NDA supplement seeking approval for DSM Fine Chemicals as an additional manufacturer upon potential US approval of patiromer.
SAFC expands continuous flow capabilities
SAFC Commercial, the custom manufacturing services business unit of Sigma-Aldrich, has installed a new commercial-scale continuous flow reactor at its Sheboygan, WI facility with capacity to produce up to 150 kg/day of product. Now fully operational, the reactor is complemented by a smaller pilot-scale continuous flow reactor that is being fabricated at the nearby Milwaukee, WI facility to carry out process optimization studies and manufacturing capability of up to 30 kg/day of product, Sigma-Aldrich says.
Abbott to acquire Latin American generic drugs producer CFR for $3 billion
Abbott Laboratories has signed a definitive agreement to acquire Latin American pharmaceutical company CFR Pharmaceuticals (Santiago). Abbott, under the terms of the agreement, will acquire the holding company that indirectly owns approximately 73% of CFR and will conduct a public cash tender offer for all of the outstanding CFR shares. The total purchase price, assuming all publicly held shares are tendered, would be approximately $2.9 billion, plus the assumption of net debt of approximately $430 million. The acquisition immediately establishes Abbott among the top 10 pharmaceutical companies in Latin America.
Bayer to divest interventional device business to Boston Scientific for $415 million
Bayer HealthCare, a subgroup of Bayer, has entered into a definitive agreement to sell its interventional device business to medical devices company Boston Scientific (Natick, MA), for $415 million. The sale will include the AngioJet Ultra Thrombectomy System and Jetstream Atherectomy System, and the Fetch2 Aspiration Catheter used in cardiology, radiology and peripheral vascular procedures. The transaction is expected to close in the second half of 2014. “With this sale, our medical care division can concentrate on innovation and growth in radiology and diabetes care where we already have a strong presence,” says Olivier Brandicourt, CEO of Bayer HealthCare.
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