Pharma/fine chemicals roundup—22 April 2014
7:31 AM MDT | April 22, 2014 | By DEEPTI RAMESH
SI Group to acquire Albemarle’s ibuprofen business
SI Group (Schenectady, NY) has agreed to acquire the antioxidant, ibuprofen, and propofol businesses of Albemarle for an undisclosed amount. The ibuprofen and propofol businesses are part of Albemarle’s $290-million fine chemistry services business, within the company’s performance chemicals segment. Prior to 1 January, the division had been part of the fine chemistry segment. The deal includes manufacturing sites in Orangeburg, SC, and Shanghai, as well as technical support services in Baton Rouge, LA, and Shanghai. The deal is expected to close later this year. SI, a leading producer of phenolic resins, alkylphenolic resins, and alkylated phenols, will gain 500 employees as part of the deal.
Pfizer eyes AstraZeneca for a reported $100 billion
Pfizer has made initial approaches to acquire AstraZeneca for £60 billion ($101 billion) in the world’s largest ever pharma acquisition, press reports say. Both companies declined to comment on the report, which appeared in The Sunday Times. A deal between Pfizer and AstraZeneca would create one of the top 10 companies globally by market value. AstraZeneca has rejected Pfizer’s overtures, according to the reports.
AMRI to shut Syracuse site
Albany Molecular Research Inc. (AMRI; Albany, NY) says that it will transition discovery and development services (DDS) activities at its Syracuse, NY, site to other sites within AMRI and will cease operations at Syracuse by the end of June. This research center provides services, including chemical process R&D, custom chemical synthesis, and scale-up of pharmaceutical intermediates and final products, to the global pharmaceutical industry. As part of the transition, Syracuse DDS capabilities and some employees will transfer to a number of AMRI facilities, including Albany; Cedarburg, WI; Holywell, UK; and Hyderabad, India. AMRI expects to finalize the transition plans by the end of this month and anticipates no interruption to current or future projects, which require Syracuse-specific capabilities.
Permira to acquire fine chemicals producer CABB Group from Bridgepoint
Permira, the European private equity firm, announced that a company owned by the Permira funds has entered into an agreement to acquire CABB International (Sulzbach, Germany), a leading manufacturers of fine chemicals from Bridgepoint. The transaction is expected to complete in June 2014. CABB is a vertically integrated global supplier of fine and specialty chemicals and custom manufacturing solutions. The company is one of the leading suppliers of custom synthesized active ingredients and intermediates for the agrochemical market and other end-markets and is the leading supplier of monochloroacetic acid (MCA), a chemical intermediate used in a variety of end-markets and applications including agrochemicals, pharmaceuticals, cosmetics, flavors, fragrances, vitamins and surfactants. CABB was founded in 2003 through the reorganization of Clariant’s acetyls operations.
Eli Lilly to acquire Novartis animal health business for $5.4 billion
Eli Lilly (Indianapolis) says it has signed an agreement to acquire Novartis Animal Health (Basel, Switzerland) for about $5.4 billion in an all-cash transaction that will strengthen and diversify Lilly's own animal health business, Elanco. Novartis had announced last year that it was considering the divestment of its animal health business, and several companies including Bayer had been looking to acquire the business. Novartis Animal Health generated revenue of about $1.1 billion in 2013. Lilly will acquire Novartis Animal Health's nine manufacturing sites, six R&D facilities, a global commercial infrastructure with a portfolio of about 600 products, a robust pipeline with more than 40 projects in development, and more than 3,000 employees. Upon completion of the acquisition, Elanco will be the second-largest animal health company in terms of global revenue.
BASF to build specialty amines plant at Ludwigshafen
BASF says it is building a new, world-scale plant to produce specialty amines at Ludwigshafen. The facility, which will have a production capacity of 12,000 m.t./year, is expected to start production at the end of 2015. The product range of this flexible, multiproduct plant comprises 15 amines for different applications. The major applications are in the construction, automotive, crop protection, and pharmaceutical industries, BASF says.
Songwon to acquire specialty chemicals business of Indian pharma firm SeQuent
Pharmaceutical company SeQuent Scientific (Bangalore, India) says it has signed an agreement with Songwon Industrial (Ulsan, South Korea), under which Songwon will acquire the former company's specialty chemicals business. The acquisition includes SeQuent's polymer stabilizer business and production site at Panoli, Gujarat State, India, together with the local R&D team. Financial details of the agreement have not been disclosed. The transaction is expected to close in the third quarter. SeQuent is an integrated pharmaceutical company that is involved in the businesses of active pharmaceutical ingredients, animal health, analytical services, contract research and manufacturing, and specialty chemicals.
"The specialty chemicals business, while profitable, had become noncore in SeQuent's stated vision to become a leading player in the global veterinary business. The proceeds [from the sale] will be utilized to reduce debt and it will also provide capital to grow the company's business," says Manish Gupta, CEO of SeQuent.
Connect with IHS Chemical Week
Our related sites