The CDMO operation was not the main attraction when Arxada was formed but has turned out to be one of the most promising. Andrew Warmington met Olivier Lambrechts, president of the NCE business
When a company is newly formed, it can take time for the owners and managers to work out exactly what they have – and which part will be the most valuable. Arxada is a case in point.
W.R. Grace has formally opened an expansion of the pharmaceutical CDMO expansion project it began 21 months ago at its site in South Haven, Michigan. The expansion has added 25% more capacity, including a new 15 m3 Hastelloy centrifuge and three 15 m3 multi-purpose chemical reactors.
During its full-year results presentation, CDMO and API supplier EuroAPI announced the launch of Focus-2027, a comprehensive project that will seek to unlock profitable growth and increase returns. Key means of achieving include:
* Streamlining the value-added API portfolio by discontinuing 13 with low or negative margins and focusing on highly differentiated, profitable products, such as vitamin B12, prostaglandins, peptides and oligonucleotides
* Having a focused CDMO offer “leveraging our recognised capabilities and technology platforms” *
Japan’s Ube Chemical has decided to merge by absorption API Corporation (APIC), the CDMO operation it acquired from Mitsubishi Chemical in December 2022. This will take effect on 1 December 2024 and is expected to have only a minimal impact on Ube’s consolidated earnings.
The company said that it made this decision in order to “further promote the sharing of the proprietary high-level manufacturing and quality control technologies of both companies, accelerate the development of new technologies, expand supply chain networks and leverage the existing bases of both companies”.
AGC’s subsidiary AGC Wakasa Chemicals has held a formal ceremony for the completion of a large-scale, multi-purpose production line at its Kaminaka plant in Japan. Scheduled to begin operations in Q1 204, the new line will add 50% to AGC Wasaka’s capacity for CDMO services for the agrochemicals and pharmaceuticals sector.
Private equity investor Advent International has completed the acquisition of 50.1% stake in Indian CDMO Suven Pharma for $5.95/share, as originally agreed in December 2022. This will shortly trigger an open offer for the remaining 26% not being retained by the founding Jasti family. The move follows approval by the Cabinet Committee on Economic Affairs in August.
New Delhi-based Safex Chemicals has acquired UK-based agrochemical CDMO Briar Chemicals from pan-European alternative investment firm Aurelius in a £73 million deal. Safex is itself backed by a private equity firm, ChrysCapital, and supplies crop protection chemicals. This is its first overseas acquisition.
