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Pharma/fine chemicals roundup—24 December 2013
2:20 AM MST | December 24, 2013 | By DEEPTI RAMESH
Perrigo completes acquisition of Elan for $8.6 billion
Health-care products firm Perrigo (Allegan, MI) says that it has completed the previously announced acquisition of biotechnology company Elan (Dublin), for about $8.6 billion. Perrigo and Elan have been combined under a new company incorporated in Ireland and have adopted the global name Perrigo Co. plc. Shares of Perrigo will trade on the New York Stock Exchange and the Tel Aviv Stock Exchange. Perrigo develops, manufactures, and distributes OTC and generic prescription pharmaceuticals, nutritional products, and active pharmaceutical ingredients (APIs).
Bayer raises offer for Norwegian pharmaceutical firm Algeta to $2.9 billion
Bayer says it will launch a voluntary cash offer to acquire the entire issued share capital of Norwegian pharmaceutical company Algeta (Oslo) for 362 Norwegian kroner ($59) per Algeta share. The offer values the total share capital of Algeta at about $2.9 billion. Bayer had offered, last month, to pay 336 Norwegian kroner per Algeta share, valuing the bid at $2.4 billion. The board of directors of Algeta has unanimously decided to recommend that its shareholders accept the new offer. The offer price represents a premium of 37% over the closing price on 25 November, the day before Algeta confirmed that it had received a preliminary, nonbinding acquisition proposal from Bayer. Algeta develops novel cancer therapies based on its patented technologies. Bayer plans to further strengthen its oncology portfolio with the acquisition of Algeta. Bayer expects to close the transaction during the first quarter of 2014.
Saltigo increases price for pharma intermediate
Saltigo (Leverkusen, Germany), a wholly owned subsidiary of Lanxess, says it will increase its prices worldwide for some multicustomer products by up to 5%, effective 1 January 2014. Products affected include chloroformates, 1,2,4-triazole, toluidine derivatives, benzothiazole, and cross-linking agents. The price increase has been necessitated by a steady increase in raw material and energy costs, Saltigo says. The product 1,2,4-triazole is used in the chemical synthesis of active agricultural and pharmaceutical ingredients. The intermediate is an important element in a range of azole-based fungicides, a class of active ingredients for crop protection; 1,2,4-triazole is also used in various pharmaceutical applications, primarily in the fight against fungal diseases, Saltigo says.
Solvay completes expansion of fluorinated derivatives in France, China
Solvay Aroma Performance, a subsidiary of Solvay, has doubled its production capacity for specialty fluoroaliphatic derivatives at Salindres, France. Solvay Aroma Performance increased its production capacity for triflic acid and triflic acid anhydride, as well as for upstream intermediates such as potassium trifluoromethanesulfinate. Downstream lithium bis(trifluoromethanesulfonyl)imide production capacity in China has also been doubled, the company says. The expansion allows Solvay Aroma Performance to meet the rapidly expanding requirements of downstream fluorinated products for applications such as pharmaceutical intermediates, liquid crystals, and batteries, the company says.
Cargill to invest $83 million in ethanol plant, eastern Germany
Cargill has announced that it will invest €60 million ($83 million) in an ethanol plant, to be located at Barby, near Dessau, in eastern Germany. The product will be used for the beverage, cosmetics, and pharmaceutical industries in Germany and Europe. The plant is expected to be operational by fall 2015. Feedstock will come from Cargill's adjacent wheat-processing facility using primarily locally grown wheat, the company says.
Beyond IHS Chemical Week:
Teva reneges on its proposal to build a $141-million API plant in India
from FiercePharma Manufacturing
The plan by Teva Pharmaceutical Industries to cut $2 billion-plus in costs leans heavily on making its manufacturing and supply chain more efficient. That restructuring has led it to back out on a new active pharmaceutical ingredient (API) facility it was going to build in India. Last year, the company put a $6.5 million deposit down for a site in the special economic zone (SEZ) in Pithampur near Indore, according to Pharmaceutical and Medical Packaging News. It intended to invest 872.5 crore ($141 million) on a facility that eventually would have employed 560. But Manish Singh, an official with the company developing the SEZ, told PMPNews.com that Teva has asked for its money back. He said Teva will have to forfeit some of the deposit to cover costs already incurred, an amount that is still being calculated.