Fri 6 Nov 2009
Chemistry World's weekly round-up of money and molecules
Posted by Matt under The Commercial ChemistNo Comments
PerkinElmer has proudly congratulated the Brawn GP racing team and driver Jenson Button on winning the Formula One Constructors’ and Drivers’ Championships respectively. The Brawn team used various PerkinElmer instruments to test the car’s performance and reliability.
PerkinElmer’s Optima 5300V inductively coupled plasma (ICP) instrument was used to monitor engine and gearbox wear by detecting metal content in lubricants, and its Spectrum 100 fourier-transform infrared spectrometer to monitor the degradation of seals and analyse organic debris from engine and gearbox lubricants.
PHARMACEUTICAL
The new Merck emerges
Following the completion of its reverse merger with Schering-Plough, the new Merck has emerged from its chrysalis and its chief executive, Richard Clark, announced that it still has a ‘fat wallet and plans more wheeling and dealing’.
The new company currently has 106,000 employees, but is expecting to shed around 15 per cent of those (15,000 jobs) ‘from all areas across the combined company’ to reduce its cost base by $3.5 billion a year.
GSK launches world’s largest malaria vaccine trial
GlaxoSmithKline (GSK) has launched the world’s largest malaria vaccine trial on its RTS,S vaccine (featured in this Chemistry World feature article). The trial has so far enrolled more than 5000 children in seven different sub-Saharan African countries and aims to enroll a further 11000.
‘A malaria vaccine could help save countless lives and redefine the future for Africa’s children,’ said Patricia Njuguna, RTS,S principal investigator and chair of the Clinical Trials Partnership Committee that is leading the clinical development of RTS,S. ‘Communities all across Africa are dedicated to this future and are participating to ensure that we develop a vaccine with an acceptable safety and efficacy profile.’
‘This is a tremendous moment in the fight against malaria and the culmination of more than two decades of research, including 10 years of clinical trials in Africa,’ said Joe Cohen, co-inventor of RTS,S and vice president of R&D, vaccines for emerging diseases and HIV, at GSK Biologicals.
Novartis goes east
Novartis has said it will invest $1 billion (£603 million) over the next five years to build ‘the largest pharmaceutical R&D institute in China’ in response to the country’s increasing demand for healthcare. The company estimates that the move will increase the number of research associates it employs at the the Novartis Institute for BioMedical Research in Shanghai (CNIBR) from 160 to over 1000.
The company has also spent $125 million on buying an 85 per cent stake in the Chinese vaccine maker Zhejiang Tianyuan Bio-Pharmaceutical Co. to expand its ‘limited presence in this fast-growing market segment’.
Quintiles and AZ tie the knot
Contract research organisation Quintiles is to ‘assume the operational responsibilities for the majority of AstraZeneca’s (AZ) clinical pharmacology delivery’. According to Anders Ekblom, executive vice president for Global Drug Development at AstraZeneca, ‘this model gives us access to the right scientific and medical expertise plus the quality, flexibility and capacity we need to work efficiently and cost-effectively to deliver these studies.’
Takeda and Amylin ‘fight the fat’
Takeda has agreed to licence various obesity drug candidates from Amylin in a deal worth up to $1 billion. The deal includes pramlintide/metreleptin and davalintide, which are currently negotiating their way through Phase II development. Amylin will receive a one-time, up-front payment of $75 million from Takeda as well as various milestone payments.
According to said Yasuchika Hasegawa, Takeda’s chief executive, ‘both Amylin and Takeda have extensive experience in the diabetes and metabolic disease area, and this collaboration should allow us to more quickly bring promising new treatments to patients in need.’
ViiV launches
GSK and Pfizer’s HIV joint venture that was announced in April this year has been officially launched. According to Dominique Limet, ViiV’s chief executive, ‘our ambition is to conduct research and development both inside and outside ViiV Healthcare. Our R&D efforts, strategic partnerships and licensing opportunities will be focused on delivering medications that help address resistance issues and dosing complexity. Within our own pipeline we have some very exciting molecules, including our late stage integrase inhibitor development programme.’
INDUSTRY
Ineos considers a bio-refinery future
Ineos Bio has begun a £3.5 million feasibility study into whether its Seal Sands site in the Tees Valley, UK is suitable for a commercial bio-ethanol and bio-energy plant that will used biodegradeable household waste as a feedstock. The study is being supported by a £2.2 million grant from the regional development agency One North East and the UK’s Department for Energy and Climate Change.
‘This is a very exciting project. Converting household organic wastes into bio-fuel and clean energy can deliver very attractive environmental and social benefits to the North East and the UK as a whole,’ said Peter Williams, chief executive of Ineos Bio. ‘Essentially, our aim is to provide bio-fuel for cars and bio-energy at competitive cost without harming the environment, with very low or zero net carbon emissions and without competing with food production.’
The technology was featured in greater detail in a Chemistry World feature article published in April.
OSHA fines BP for refinery blast
The US Occupational Safety and Health Administration (OSHA) has slapped BP with an $87.4 million fine for failing to correct potential hazards at its refinery in Texas City, Texas following the fatal explosion that occured at the site four and half years ago. 15 people died and 170 were injured following the explosion at the refinery - the third largest in the US.
The fine is the largest in OSHA’s history, with the second largest of $21 million being the fine it imposed on BP following the original incident. The company has already paid more than $2 billion to settle civil lawsuits and paid a $50 million fine to the US Justice Department to settle criminal charges related to the blast.
BP has said it is appealing against this latest fine.
ESG wages war on contamination

Following the acquisitions of Environmental Services Group in 2006 and Scientifics in 2007, testing and inspection group Inspicio has combined the companies and launched the Environmental Scientifics group (ESG). The new group will provide testing, analysis and consultancy services across a range of fields from forensics and commodity chemical analysis to environmental monitoring.
At the launch in the London’s Cabinet War Rooms, David Watson, managing director for the newly created Laboratories and Analytical Services division told Chemistry World that the new structure brings together all of the companies’ services under a single management structure.
Shell slashing jobs as profits plummet
Shell is cutting 5000 jobs, around 10 per cent of its workforce, as part of its previously announced plan to streamline the business, which saw third quarter earnings slump 73 per cent to $2.9 billion compared to the same period last year.
Shell’s chief executive, Peter Voser, said the company’s results ‘were affected by the weak global economy. Upstream and Downstream profitability has been sharply reduced compared to year-ago levels.’
The company did not say how many job cuts would be made from its chemicals business, which saw chemical sales volumes fall 5 per cent compared to the same period last year.
‘We continue to focus on improving our competitive cost position, simplifying Shell, and increasing personal accountabilities. The Transition 2009 programme, which I announced earlier this year, is progressing well, and will be completed by the end of 2009. Some 5,000 employees are leaving Shell as a result of these changes. This represents around a 10% reduction in employees in the redesigned divisions and corporate functions,’ said Voser.
‘We have reduced operating costs by some $1 billion in the first nine months of 2009 compared to the same period in 2008. This reduction excludes the impact of exchange rate movements and non-cash pension costs.’
Rhodia on the up as others still in the slump
Rhodia has seen its third quarter operating profit increase 19.5 per cent year-on-year to €104 million (£93 million) despite sales falling 15 per cent to €1.04 billion. The increase in profitability was due to the company’s cost saving drive which has reduced fixed expenditures by €96 million year so far this year.
‘In Q3, our results continued to improve substantially, especially in our Polyamide and Silcea activities. This was due not only to a significant recovery in demand driven by emerging markets, but also to our ability to defend margins and our enhanced operational efficiency,” said Rhodia’s chief executive, Jean-Pierre Clamadieu.
‘We anticipate that demand in Q4 will remain similar to the Q3 level. I am convinced that we are today well prepared to emerge stronger from the crisis.’
But the news across the sector is not all so rosy - DSM’s third quarter operating profits fell 41 per cent to €139 million with sales falling to €2.02 billion, 14 per cent down on the prior year’s result. However, despite the gloom its operating profits were more than double those achieved during the second quarter of this year.
Total’s chemicals business also saw a fall in revenues and profits in the third quarter, with sales dropping 28 per cent year-on-year to €3.89 billion and operating profits falling 44 per cent to €191 million. However, both these figures were an improvement on the company’s second quarter results with sales increasing 6 per cent and operating profits more than tripling.
Matt Wilkinson and Phillip Broadwith











