Chemistry World Blog

Merck and Endocyte in $120 million deal – intestinal Parkinson’s gel gets positive results – and UK government gives fracking the green light (more…)

Novartis to cut jobs and close more sites – Lilly withdraws sepsis drug – And China moves to protect its caprolactam industry (more…)

PHARMACEUTICAL: Merck & Co buys Inspire for $430 million

Drug maker Merck & Co has agreed to buy Inspire Pharmaceuticals, which specialises in eye products, for $430 million (£260 million). The boards of both companies have voted in favour of the deal and the Inspire board has recommended shareholders tender their shares. Investment firm Warburg Pincus Private Equity IX, which owns 28 per cent of Inspire, has agreed to tender all of its shares. The key Inspire product is AzaSite (azithromycin), an eye drop product for the treatment of conjunctivitis caused by bacteria. It is based on azithromycin, a widely used antibiotic that prevents bacteria growth by interfering with protein synthesis. AzaSite was granted US marketing approval in 2007, and in 2010 it generated sales of $43 million, representing a 22 per cent increase compared with 2009. Total sales at Inspire were $106 million in 2010, representing a 15 per cent increase. (more…)

Chemical manufacturers slowly restart plants in Japan

Some chemical manufacturers in Japan have begun restarting plants that were temporarily shut down following the recent earthquake and tsunami. But progress is slow, and the ongoing power disruptions are causing problems. (more…)

Takeda teams up with Intra-Cellular Therapies

Intra-Cellular Therapies, which specialises in drugs for central nervous system conditions, has signed a licensing deal with Japanese pharma major Takeda. Under the terms of the deal, Takeda will receive marketing rights to the Intra-Cellular selective phosphodiesterase type 1 (PDE1) inhibitors for the treatment of schizophrenia. The companies say that PDE1 compounds have the potential to treat a variety of psychiatric and neurological diseases. Intra-Cellular will receive an upfront cash payment – although the companies have not said how big this will be. In addition, it will be eligible for up to $750 million (£460 million) based on milestones. (more…)

Abbott wins approval for dissolving implant

Pharma major Abbott has been granted EU approval for ‘the world’s first drug eluting bioresorbable vascular scaffold’ for the treatment of coronary artery disease. The scaffold restores blood flow in clogged vessels by providing support for the walls of the structure. But it is made of polylactide, which means it should dissolve within two years of insertion, unlike a metal scaffold, which would be permanent. The company says that after the implant dissolves blood vessels treated with the scaffold might regain the ability to move, flex and pulsate in a similar way to untreated vessels. In addition, the scaffold releases Zortress (everolimus), a Novartis drug that suppresses the immune system to reduce the risk of rejection. (more…)

Ashland and Süd-Chemie joint venture

German speciality chemical company Süd-Chemie and US speciality company Ashland have combined their activities in the area of chemicals for the foundry industry. Each company holds a 50 per cent stake in the joint venture, ASK Chemicals, which is based in Hilden, Germany and employs 1300 staff. A wide range of chemicals, such as additives, catalysts and coatings, are used in foundries, which produce metal castings using moulds.  

New Lanxess plant in India

German specialty chemicals company Lanxess has opened a new plant for ion exchange resins in India. Lanxess is best known as a manufacturer of synthetic rubber for tyres. The plant is located in Jhagadia in Gujarat and has an annual capacity of 35,000 metric tons. Lanxess says it has invested about €50 million (£43 million) in the site, which already has a rubber chemicals production plant that the company took over in March. Ion exchange resins are used for water treatment in power generation, microelectronics production and the industries for drinking water and food preparation.  (more…)

PHARMACEUTICAL

GSK welcome UK tax change

UK drugmaker GlaxoSmithKline (GSK) has responded to new UK government tax plans by promising to invest £500 million in manufacturing projects. The government will introduce a ‘patent box’ that will reduce the rate of corporation tax on profits generated from intellectual property (IP) in the hope that this will encourage investment in research and development. (more…)

We’ve had a look at some of the financial results for the third quarter of 2010 already. Here’s the rest of the data. (All percentage changes are based on the same period last year.)

PHARMACEUTICAL

AstraZeneca made sales of $7.9 billion (£5 billion), a 4 per cent decrease. Operating income decreased 25 per cent to $2.4 billion.

Bayer made sales of €8.6 billion (£7.3 billion), a 16 per cent increase. Operating income decreased 14 per cent to €560 million. (more…)

 PHARMACEUTICAL

Job cuts at Roche…

Swiss pharma major Roche says it will cut 4800 jobs – 6 per cent of its global workforce – in 2011 and 2012. In addition, 800 jobs will be transferred within the organisation and 700 outsourced. The move comes as part of a cost cutting initiative that the company says will save it CHF 2.4 billion (£1.5 billion) annually. But the restructuring will cost Roche CHF 2.7 billion from 2010 to 2012. ‘The initiative is a response to mounting cost pressures in healthcare, particularly in the US and Europe, and to increasing hurdles for the approval and pricing of new medicines,’ the company says. As part of the plan, it will look to sell two US sites – in Florence, South Carolina, and Boulder, Colorado – and close one site in France.

…and Bayer

German pharma and chemical company Bayer is doing likewise, with plans to cut 4500 jobs worldwide by 2012. Meanwhile, 2500 new jobs are to be created ‘particularly in the emerging markets’ so that the net loss will be 2000, 1.8 per cent of the 108,700-strong total workforce. The move will save Bayer €800 million (£685 million) annually from 2013, it says, although a one-off cost of €1 billion is expected by 2012 to cover the restructuring. It adds that ‘sales and earnings are under pressure from generic products, rising development costs and the effects of health care reforms’. (more…)