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Pharma/fine chemicals roundup—4 March 2014
3:20 AM MST | March 4, 2014 | By DEEPTI RAMESH
Siegfried reports huge rise in profits
Siegfried (Zofingen, Switzerland) reports a more than doubling in net profits for 2013, compared with 2012, to 53.9 million Swiss francs ($61 million), mainly because of a favorable tax effect and extraordinary income, the company says. Full-year sales increased 1.9%, to SF374.9 million. The company’s drug substances business reports sales of SF274.2 million, which accounted for about 73% of overall sales; of this, SF182 million was generated by exclusive synthesis sales and SF92 million by sales from Siegfried’s own portfolio of controlled substances, the company says. The reported figures in the exclusive synthesis business only partially reflect volume growth, because sales were impaired by the lower purchase price of a key raw material; these savings were passed on to the customer, resulting in a sales decrease of SF8 million, Siegfried says . In its drug products business, Siegfried generated sales of SF100.8 million.
Ranbaxy stops API shipments from Indian plants
Ranbaxy Laboratories (Gurgaon, India) says that it has temporarily suspended shipping active pharmaceutical ingredients (APIs) produced at its plants at Toansa and Dewas, India. The company is currently examining processes and controls at all its API manufacturing plants and quality units, Ranbaxy says. The announcement follows the US FDA's announcement on 23 January prohibiting Ranbaxy from manufacturing and distributing APIs from its Toansa facility for FDA-regulated drug products. API shipments from the Toansa plant to the United States were suspended on 24 January. Ranbaxy has now voluntarily suspended all API shipments from the Toansa and Dewas plants to further evaluate and inspect manufacturing processes and quality control systems, the company says. The shipments will resume once the processes and controls are reconfirmed based on internal evaluations and inspections, the company says.
Sumitomo Chemical to sell its stake in AstraZeneca’s Japan unit
Sumitomo Chemical says that it has decided to sell its 20% stake in AstraZeneca K.K. (Osaka, Japan) to AstraZeneca (London). AstraZeneca K.K., which was established in 1975, develops, manufactures, and markets pharmaceuticals. Following Sumitomo’s exit, AstraZeneca will have full ownership of AstraZeneca K.K. With the sale, Sumitomo aims to further strengthen its financial base, the company says. In the fiscal year ending 31 March, Sumitomo expects to post an extraordinary gain of about ¥10 billion ($98 million) on a non consolidated basis, from the stock sale.
Lonza to elect two new board members
Lonza says that its board of directors is proposing Barbara Richmond and Juergen Steinemann to be elected as new members of the board at the company’s next annual general meeting on 16 April. Lonza also announced that board member Peter Wilden will not stand for reelection at the next annual general meeting. Richmond brings to Lonza extensive experience in audit and controlling functions, as well as global business growth strategies, and Steinemann brings Lonza broad knowledge in business leadership of global, nutrition-based companies, Lonza says.“By expanding the board by one additional member, we are preparing our company for the future,” Soiron says.
Codexis appoints Patrick Yang to board of directors
Codexis (Redwood City, CA), a developer of biocatalysts for the pharmaceutical and fine chemical industries, says that it has appointed Patrick Yang, to its board of directors. Yang brings significant experience in pharmaceutical manufacturing and process development to the Codexis board, following several executive leadership roles within the pharmaceutical industry, Codexis says. Yang served most recently as executive v.p. and global head of technical operations at pharma major Roche (Basel). Previously, Yang worked for Genentech (South San Francisco, CA), a leading biotechnology company, for about 10 years, where his most recent position was executive v.p./product operations. Prior to Genentech, Yang held several leadership roles at Merck & Co. (Whitehouse Station, NJ), including v.p., Asia/Pacific manufacturing operations and v.p./supply chain management.
H.I.G. Capital closes acquisition of parent of Ampac Fine Chemicals
Private equity firm H.I.G. Capital (Miami) says it has closed its previously announced $392-million acquisition of American Pacific (Ampac; Las Vegas),the parent company of Ampac Fine Chemicals (AFC; Rancho Cordova, CA). Some 68.1% of American Pacific’s shares were tendered in response to HIG’s tender offer. Ampac will now become a portfolio company of HIG capital.
Mane flavorings awarded GMP certificate for use as pharma excipients
Specialty chemicals distributor Nordmann, Rassmann (NRC; Hamburg) says that flavor and fragrance manufacturer Mane (Le Bar-sur-Loup, France), a long-standing supplier to NRC, has been awarded a pharma good manufacturing practice (GMP) certificate for production. Mane is the first manufacturer to receive a state-issued GMP certificate for their production of flavorings, which also comply with current International Pharmaceutical Excipients Council regulations, thereby validating them for use as pharmaceutical excipients, NRC says.
This new certificate qualifies Mane beyond their existing status as an active substance manufacturer of thymol and selected essential oils. Being a producer of GMP-certified flavorings for use as excipients underscores the company's capability to produce flavorings suitable for pharmaceutical products. NRC distributes Mane's flavorings in Germany and Scandinavia.
Bayer to acquire Chinese pharmaceutical company
Bayer plans to acquire Dihon Pharmaceutical Group (Kunming, China), a privately held pharmaceutical company specializing primarily in over-the-counter (OTC) and herbal traditional Chinese medicine (TCM) products. Financial details of the acquisition have not been disclosed. Dihon generated sales of €123 million ($168 million) in 2013, and it employs about 2,400 people, Bayer says. Dihon has several manufacturing sites throughout China. The acquisition is expected to close in the second half of 2014, Bayer says.
Eastman plans carboxylic acids expansion
Eastman Chemical announced that it will debottleneck carboxylic acid plants at its Longview, TX, and Kingsport, TN, facilities. The additional capacity is expected to be completed in the fourth quarter and will add approximately 50 million lbs, Eastman says. Eastman manufactures carboxylic acids for multiple markets, including pharmaceutical chemical intermediates, food and feed, and agriculture. The company says it can add at least 20 million lbs of additional low-cost carboxylic acids capacity as future demand dictates.
Offer period closes for Bayer’s acquisition of Algeta
Bayer says that the offer period for the previously announced voluntary takeover offer for Norwegian pharmaceutical company Algeta (Oslo) ended on 26 February, and Bayer had received acceptances for a total of about 42,731,347 shares, representing nearly 97.28 % of Algeta's share capital. Bayer offered 362 Norwegian kroner ($60) in cash per Algeta share. The transfer of shares to Bayer and the payment of the offer price will take place no later than 12 March, Bayer says. All regulatory approvals required for completion of the proposed acquisition have been obtained.