Pharma/fine chemicals roundup—29 July 2014
1:30 AM MDT | July 29, 2014 | By DEEPTI RAMESH
Lonza reports huge rise in profits
Lonza recorded net profits of 140 million Swiss francs ($155 million) for the first half of 2014 compared with profits of SF41 million in the first half of 2013. Sales for the first half of 2014 increased by 3.2% compared with the year-ago period, to SF1.80 billion. In the first half of 2014, Lonza’s specialty ingredients and pharma and biotech market segments both delivered a sound performance despite currency headwinds and are fully on track to deliver the growth targets, Lonza says. The sales growth of 3.2% and core Ebit growth of 13.1% to SF241 million are the result of implementation of growth projects and restructuring activities, Lonza says. The businesses also managed to deliver strong performances against external obstacles like unfavorable exchange rates, lower-than-anticipated GDP growth rates worldwide, adverse weather conditions and different order patterns by customers, Lonza says. “These are satisfying results; and they show that we’re on the right path with our transformational initiatives, which are already delivering first benefits and making us more market oriented and competitive,” says Richard Ridinger, CEO of Lonza.
Ipca suspends API shipments to US
Ipca Laboratories (Mumbai), a manufacturer of formulations and active pharmaceutical ingredients (APIs), says it has decided to temporarily suspend API shipments from its manufacturing facility at Ratlam, India, to the United States in order to resolve issued identified during a recent US FDA inspection of that facility. Ipca received certain inspection observations in Form 483 from FDA.
SAFC reports rise in second-quarter sales
SAFC Commercial, the custom-manufacturing and services business unit of Sigma-Aldrich, reports a 2.4% increase in sales in the second quarter of 2014 compared with the year-ago quarter, to $172 million. Earnings figures for the business have not been disclosed. SAFC's sales in the second quarter were “lower than expected due to the timing of several large contract manufacturing orders,” the company says.
Merged Cambridge Major and AAIPharma appoint former Lonza executive as new CEO
Cambridge Major Laboratories (CML; Germantown, WI), a producer of pharmaceutical intermediates and active pharmaceutical ingredients (APIs); and AAIPharma Services (Wilmington, NC), a provider of contract services that support all phases of drug development, say that they have appointed Stephan Kutzer as new CEO, effective 1 August. CML and AAIPharma merged in October 2013. The merged company is a portfolio company of private equity firm American Capital (Bethesda, MD). Kutzer will succeed Patrick Walsh, who left the company in April. Most recently, Kutzer served as COO of Lonza.
GSK to license Codexis technology
Biocatalyst firm Codexis (Redwood City, CA) and GlaxoSmithKline (GSK) have announced a technology license agreement worth up to $25 million in initial payments and milestone and royalty opportunities to Codexis. Under the terms of the deal, Codexis licenses GSK to use Codexis’s proprietary CodeEvolver protein engineering platform technology in human health care. The agreement allows GSK to use the technology to develop novel enzymes for manufacturing GSK’s pharmaceutical and health-care products. Upon completion of technology transfer, GSK will have the CodeEvolver platform installed at its Upper Merion, PA, site.
Mylan to acquire Abbott's non-US branded generics pharma business
Mylan (Pittsburgh) has entered into a definitive agreement with Abbott to acquire Abbott's non-US developed markets specialty and branded generics business in an all-stock transaction. Abbott will receive 105 million shares of the combined company, worth approximately $5.3 billion based on Mylan's closing price of $50.20 on 11 July, representing an approximately 21% ownership stake. The transaction will further diversify Mylan's business and strengthen its commercial platform outside the United States, building new opportunities for growth and additional sales channels in the acquired markets.