Sanofi-Synthelabo
Makes Hostile Bid for Aventis
Sanofi-Synthelabo made a $60 billion (Euro 47 billion)
hostile takeover bid for Aventis in order to take
advantage of Euro 1.6 billion in synergies beginning
in 2006. While three options were given to Aventis
shareholders, the main deal includes Euro 37.9 billion
in stock and Euro 9.1 billion in cash. The Aventis
board rejected the bid because it has unreasonable
risks associated with it and only includes a 3.6
percent premium - "an inferior value" -
compared to what Aventis can achieve on its own.
Sanofi is in a hurry to complete the deal because it
could be a takeover target itself by the end of the
year.
Famous
Quotes of the Month
- The brain is like a muscle. When we think
well, we feel good. Understanding is a kind of
ecstasy. (Carl Sagan)
- It takes self-confidence to say "I'm
sorry." (Alexandra Stoddard)
- Pay attention to your enemies, because they
are the first to discover your mistakes. (Antisthenes)
- You are not judged by the height you have
risen, but from the depth you have climbed.
(Frederick Douglas)
- As you climb the ladder of success, there is
always someone behind you keeping it steady.
(Jacob M. Braude)
Why
don't you feel a mosquito bite until it begins
to itch?
Interestingly, mosquitos take their time to
bite. They usually rest on human skin for at
least a minute before starting to bite. They
are so light that and so skillful with their
biting technique that most humans can't feel
them, even though the mosquito might be
resting on their skin for five (5) minutes or
more.
Before the mosquito presses her lancets into a
capillary, she lubricates her mouth parts with
saliva and proceeds to suck blood for up to
three (3) minutes until her stomach is
literally about to burst. The mosquito then
flies off to deposit her eggs and most of us
don't feel the bite until after she is long
gone. This is because the saliva acts not only
as a lubricant in the biting process but as an
anesthetic to the bitee. This allows us to be
oblivious of the fact we are being bitten. But
the saliva contains anticoagulant materials to
keep the blood flowing into the mosquito.
These materials cause allergic reactions in
many people and it is this allergic reaction
that causes the bumps, swelling and itching
associated with mosquito bites.
Clariant
Reduces Workforce in Indian Business
Clariant reduced the workforce at its Indian
subsidiary Colour-Chem, of which it owns 50.1
percent, as part of a restructuring program to
consolidate much of its production at its Roha
location. Nearly 500 positions in production
and infrastructure were eliminated at
company's Thane facility. The restructuring is
intended to improve Colour-Chem's
competitiveness and enable its growth.
Digital
Photography Impacts Eastman Kodak
In response to the changing photography
market, which is converting from traditional
film to digital technology at a rapid pace,
Eastman Kodak will cut about 20 percent of its
workforce (approximately 15,000 employees)
over the next three years. The company expects
to achieve annual cost savings of $800 million
to $1 billion beginning in 2007 in its
traditional photographic operations.
Givaudan
Reduces Workforce
Givaudan will cut 300 jobs in the expectation
of saving $53 million (Euro 43 million, CHF 67
million) annually beginning in 2005. A
one-time restructuring charge of CHF 68
million will go against 2003 earnings. Some of
the positions were reduced late in 2003 and
the remaining jobs will be eliminated this
year via non-replacement/retirement and
targeted job reductions.
SK
Chairman Jailed
The chairman of South Korea's SK Group, who is
also a board member of petrochemicals company
SK Corp., has been placed in jail while he
awaits prosecution on charges of embezzlement
and fraud. The charges against Son Kil-seung
are connected with an investigation into
alleged illegal accounting practices at SK
Shipping, which was created in 2003. Nearly $1
billion is connected to the illegal
activities. The chairman made no official
statement, and a spokesman for the group
indicated that a five-member committee would
be responsible for operations while Son is in
jail.
Sovereign
Tries to Gain Control of SK Corp.
Major shareholder Sovereign Asset Management
has continued its attempts to gain a large
enough stake in SK Corp. to gain control of
the company. Sovereign holds a 14.99% stake in
SK Corp. and hopes to replace six company
directors at the shareholders' meeting in
March. The company responded by selling its
remaining treasury stocks to investors that
support the current board, ending up with
35.54% of shares supporting the board. The
determining votes will come from domestic
individual and corporate investors, who hold a
combined 33.46% of the company's stock.
Terapia
Focuses on Pharma
In order to become a pharmaceutical-only
company, Romania's Terapia Cluj plans to cut
nearly 150 jobs (close to 20 percent of its
staff) and sell off its chemicals business.
U.S.-based Advent International has a 90.7
percent stake in Terapia, which it gained in
August, 2003. Stephen Stead took over as the
new general manager effective February 1,
2004.
Bayer
CropScience Gets New CEO
Friedrich Berschauer has been named CEO of
Bayer CropScience, succeeding Jochen Wulff who
will retire as of April 1. Berschauer
currently is a board member of Bayer
Healthcare and head of the business' animal
health division. Gunnar Riemann, who is
responsible for biological products with
Bayer, will replace Berschauer in both
positions.
Cargill-Dow
Names New Leader
Cargill Dow, the 50:50 joint venture between
Dow Chemical and Cargill, has named Kathleen
Bader chairman, president and CEO. Bader,
currently corporate vice president, quality
and business excellence and business group
president for styrenics and engineered
products at Dow, replaces the retiring Randy
Howard.
Crompton
Gets New Head
Crompton appointed Robert Wood, most recently
business group president of thermosets for Dow
Chemical, as its new president and CEO. Wood
replaces the retiring Vincent Calarco.
Dow's
Gross to Retire; Company Appoints R&D
Council
Rick Gross, head of R&D at Dow Chemical,
will retire after completing a special
assignment for the company. Gross will have
three projects to complete: defining an
R&D strategy for Dow in emerging markets
like China, India and Russia; creating an
R&D strategy with regard to relationships
and alliances; and pinpointing a technology
focus for the company that goes beyond
biotechnology.
Dow will replace Gross with an R&D Council
consisting of five directors responsible for
different areas of R&D within the company.
The council will manage company-wide R&D
resources and activities. This new leadership
approach is expected to align R&D efforts
more closely with Dow's business operations.
DuPont
Rearranges Management
As part of its plan to reduce yearly costs by
$900 million over the next two years and grow
its revenue by $1 billion annually, DuPont has
reorganized its senior management to
"rebalance resources toward emerging
markets." A chief marketing and sales
officer position was created, and top
appointments were made for the performance
materials and global human resources groups.
Geographic-based appointments include leading
positions for Asia-Pacific, China, India and
Pakistan, and Latin America. Business units
receiving new leadership include Pioneer
Hi-Bred International, titanium technologies
and the business finance group.
Dynea
Gets New CEO
Finnish adhesives and resins producer Dynea
has appointed Roger Carlstedt, business area
manager for ABB Utilities, to replace Oivind
Isaksen as president and CEO of Dynea
International and Dynea Chemicals, the group's
operating businesses. Carlstedt has also been
named as president and CEO of holding company
Dynea Oy. The management change came as the
result of poor financial performance
Gemuend
Resigns from Lonza After Poor Company
Performance
Due to his inability to implement effective
organizational change, Lonza's CEO Markus
Gemuend will resign as soon as a replacement
is found. The announcement came after the
company reported a 28 percent decline in group
operating profits in 2003. Custom
manufacturing, fine chemical and biotechnology
activities suffered the greatest losses.
Expected improvements in these businesses did
not come in 2003 and are not likely in 2004,
either. The board plans to become more heavily
involved in the business and to fully
reorganize its operations.
PCAS
Gets New President
Christian Moretti has replaced Jean-Pierre
Stephan as president of fine chemical
manufacturer PCAS. Moretti is currently
president of Dynaction, a holding company with
a 70 percent stake in PCAS. According to
company reports, PCAS will merge with
Dynaction
Analysts
Look Positively on Chemical Stocks
Overall, chemical stocks performed well last
year despite high energy prices, SARS and the
war in Iraq. Analysts are expecting the trend
to remain in 2004 as the economy continues to
improve. Rising prices are contributing to the
growth in many chemical sectors. Low
inventories are also expected to lead to
increased demand. An anticipated decline in
energy prices and a continued weakness in the
dollar will also benefit many chemical
companies. Several companies have already
reported better than expected earnings for the
fourth quarter of 2003
European
Recovery Slowed by Strong Euro
Continued improvement in the European and
global economies will drive the economic
recovery in the European chemical industry.
The strong Euro, however, will impact sales of
chemicals outside of Europe and to customers
that rely on foreign sales. Competition from
Asian countries linked to the U.S. dollar is
also expected to be stiffer for European
chemicals because of the strong Euro. Since
export sales are often a key driver for an
economic recovery, output growth is predicted
to be only a moderate 2 to 2.5 percent during
2004. Both gross domestic product (GDP) and
overall manufacturing production for chemicals
are expected to increase by nearly 2 percent
in Western Europe.
Natural
Gas Prices Rise Again
Despite inventories being higher than
historical levels, natural gas prices spiked
once again during the first part of the New
Year, climbing from $5.50/million Btu to over
$7.00/million Btu. Analysts predict the price
will remain well above $5.00/million Btu for
the next several months. Several companies and
the American Chemistry Council have called for
an investigation into the price hikes. Some
believe that concerns about the future ability
to meet demand are causing the instability.
There is definitely a perception that supply
and demand are out of balance. Prices for
Naphtha, Ethylene and Benzene have also gone
up in the first month of 2004.
FDA
Approves Seroquel
The U.S. FDA approved AstraZeneca's Seroquel (Quetiapine)
as both a monotherapy and adjunct therapy for
the treatment of manic depression. The drug
was initially approved for treatment of
schizophrenia in 1997. Recently the company
received approval to use Seroquel for manic
depression from the UK, Italy, Mexico and New
Zealand in addition to 14 other European
countries.
Chemwerth
Announces 4th Qtr Audit Record
Chemwerth, Inc. of Woodbridge, CT, has
announced that they have completed nine (9)
FDA inspections in China and the U.S. during
the 4th quarter, 2003. Seven of the plants in
China received zero 483's and the eighth
manufacturer in China had only three (3) minor
observations based on a product unaffiliated
with Chemwerth. The US manufacturer was given
a 3-point 483 inspection by the FDA.
There are over 3,000 pharmaceutical plants in
China but only 51 have passed FDA inspections;
a mere 0.02%. Of the 51 FDA inspected plants,
30 were inspected through Chemwerth, which
represents 59% of the total inspected plants.
FDA
Considers Legal Action for Drug Re-imports
The FDA is considering taking legal action
against cities and states that implement drug
re-importation programs from Canada to obtain
low-cost pharmaceuticals for their employees.
A ban on re-imports without the approval of
the U.S. Department of Health and Human
Services took effect late in 2003. Discussions
have been held between the FDA and officials
from Boston and Springfield Massachusetts, and
Illinois and Iowa, among others. Congress is
expected to resume discussions over
legalization of drug re-imports when it is
back in session.
Medeus
Gets Elan's European Sales and Marketing
Business
Medeus UK Ltd., the newly created
pharmaceutical company backed by Apax Partners
Funds, has purchased the European sales and
marketing business of Elan Corp. PLC. The
deal, valued at nearly $120 million, will
close in the first quarter of 2004. Medeus
will acquire Elan's operations in Europe with
net revenue and gross profits of $56.4 million
and $38.7 million, respectively, for the first
nine months of 2003. Elan has retained its
R&D center in the UK and its operations in
Ireland. The company expects to clear about
$10 million from the deal.
New
generic APIs from BASF
Decreasing revenues from its three major
generic pharmaceuticals (Caffeine, Ibuprofen
and Psuedoephedrine) have led BASF to develop
new generic active pharmaceutical ingredients
(APIs). Paroxetine, the active ingredient in
generic antidepressants, is one new product
for the company that is expected to grow. BASF
has several other products in development and
will use the funds generated by their sales to
invest in its excipients and contract
manufacturing businesses.
Pfizer
to Unload Diagnostics Business
Pfizer announced that it will sell the Swedish
in-vitro allergy and autoimmune diagnostic
testing business gained in its acquisition of
Pharmacia to private European equity investors
Triton and PPM Ventures for $575 million (Euro
463 million). Pfizer says the diagnostics
business does not fit with its core
operations. The company expects the deal to
receive regulatory approval and close in the
first half of 2004.
Teva
Acquires Sicor
Generic pharmaceutical manufacturer Teva
(Israel) completed its $3.4 billion (Euro 2.9
billion) acquisition of U.S. generics company
Sicor on January 22, 2004. The acquisition,
first announced in October of last year, adds
Sicor's generic injectable business and
biogenerics capabilities to Teva's oral dose
generic drugs expertise. Sicor's active
pharmaceutical ingredients business will also
expand Teva's product offerings in this area.
Zyprexa
Approved by FDA
Eli Lilly's drug Zyprexa (Olanzapine) has been
approved by the U.S. FDA for the treatment of
bipolar disorder. According to Lilly, Zyprexa
is the first drug approved by the FDA for both
acute mania and bipolar disorder in nearly 30
years. Over 2.5 million Americans have been
diagnosed with bipolar disorder.
Biocatalytic
Solutions Focus of New Collaboration
DSM Pharma Chemicals (DPC) and Diversa have
formed a partnership to identify new
biocatalytic solutions for improving the cost
effectives of chemical processes. DPC will
identify specific chemical transformations to
be studied and Diversa will develop the
catalysts. DPC will then use the catalysts to
produce commercial scale quantities of
pharmaceutical products. Diversa will receive
R&D and milestone payments for processes
that are commercialized by DPC.
Dow
to Develop Vaccines for NIH
The National Institutes of Health (NIH) and
the industrial biotechnology unit of Dow
Chemical have signed a four-year, $5.7 million
agreement to develop a technology based on the
use of genetic engineering for the product of
vaccines. Dow is working with the Fraunhofer
USA Center for Molecular Biotechnology and
hopes to be able to produce vaccines in 3 to 4
months using a plant-based system.
BASF
Sells Herbicde Business to Nufarm
Australian-based Nufarm agreed to purchase
BASF's phenoxy herbicide business for $54
million (Euro 42 million). With the deal,
Nufarm acquires six active ingredients with
sales totaling approximately Euro 40 million
annually that are sold under the U46 and
Duplosan trade names. The sale is part of
BASF's strategy to focus on
"higher-growth products." Nufarm
will raise over half of the money by selling
shares to institutional investors.
Monsanto
Pulls GM Products Out of Argentina
Monsanto will discontinue sales of its GM soy
products in Argentina due to the absence of
adequate protection of intellectual property
rights. The company does expect to re-enter
the market once the Argentine government
implements an appropriate enforcement program.
Since 1998 Monsanto has invested $185 million
(Euro 391 million) in Argentina, but cancelled
a $40 million investment in 2003. For the
immediate future the company will focus
R&D investments in Argentina on new
hybrids of corn, sunflower and sorghum.
Air
Liquide Gets Messer Griesheim Businesses
Air Liquide will purchase the UK, U.S. and
German businesses of industrial gasses group
Messer Griesheim for $3.2 billion (Euro 2.68
billion). The deal must be approved by
regulatory agencies and some divestitures will
likely be required. Messer Industrie must also
gain full ownership of the remaining Messer
businesses in order for the deal to go
through. It will use the funds from the sale
to Air Liquide to buy out other financial
investors, and will focus on strategic
opportunities in Europe and Asia.
Asian
Olefins Industry Looking Bright in 2004
Olefin prices in Asia are on the rise, and
analysts predict that 2004 will be a good year
for players in this sector. Spot prices for
both Etlylene and Propylene were up
considerably in January. Supply is currently
tight, and higher prices are expected to
continue for some time. Major derivatives are
also experiencing price increases. Styrene,
Polyethylene, Polypropylene and Vinyl chloride
monomer all have seen jumps in prices. Some
analysts, however, do caution that the high
prices can't be sustained because they are
already at a level higher than what many
customers are willing to pay.
Brazil
to Invest in Large Petrochemicals Complex
Brazil will invest $1.5 billion (Euro 1.2
billion) in a natural gas petrochemicals
complex on the border with Bolivia.
Yacimientos Petroliferos Fiscales Bolivianos ,
Bolivia's state-owned oil and natural gas
company and Brazil's largest petrochemicals
company, Braskem, have both expressed interest
in investing in the project as well. The
complex will produce fertilizers and other
commodity chemicals. Brazil and Bolivia
recently negotiated to lower the price of
natural gas imported into Brazil from Bolivia
in order to encourage its use.
Consortium
Bids $1.3 Billion for Tupras
The highest bid for the Turkish government's
65.76% stake in Turkish Petrochemical
Refineries Corporation (Tupras) came from a
consortium led by German registered Efremov
Kautschuk GmbH and Turkish conglomerate Zorlu
Holding. The $1.3 billion (Euro 1 billion)
offer came in higher than the bid made by
Anadolu Ortak-Girisim Grubu. Approval for the
purchase must be given by Turkey's competition
and monopolies authority and the privatization
high counsel. Tupras includes the Izmir,
Batman and Kirikkale refineries and the Korfez
petrochemicals and refinery complex.
Fertilizer
Producer Gets New Name
Norwegian company Norsk Hydro will split off
its fertilizer business, Hydro Agri, and list
it on the Oslo stock market as Yara on March
25th. With 25 percent of the European market
and 6 percent globally, the new company will
be the largest fertilizer producer worldwide.
Ownership is being transferred to Hydro
shareholders excluding the 20 percent of
shares that will be floated on the Oslo stock
exchange.
Petrochemical
Exports from Iran Expected to Grow Rapidly
According to the National Petrochemical
Company (NPC), petrochemical exports from Iran
are expected to increase from $1.2 billion
(Euro 934 million) for the year ending in
March to more than $4 billion in 2006. Output
is anticipated to rise from 16 million tonne
to 37 million tonne in the next two years. The
NPC also expects nearly 60,000 new jobs to be
created in 2004 in the petrochemical sector.
Three
Bidders Remain for Unipetrol
Poland's PKN Orlen, Hungary's MOL, and Royal
Dutch Shell remain the only bidders for Czech
oil and petrochemical group Unipetrol. The
Czech government eliminated Russia's Tatneft,
Kazakhstan's KazMunaiGaz (KMG), and
Czech-Slovak finance group Penta during the
second round of bidding. Price will be the
determining factor in deciding which company's
bid is successful. Bids are expected to range
from Koruna 7 billion to Koruna 13 billion.
Dynamit
Nobel has New Bidder
Apollo Management, a private equity capital
company, has made a bid to acquire Dynamit
Nobel from Mg Technologies. Several other
private equity firms have already made bids.
The deadline for submitting bids in this
second round comes at the end of January.
New
Technologies for Bayer Fine Chemicals
Bayer Fine Chemicals is offering three new
technologies as part of its custom synthesis
services. New coupling agents for the
formation of carbon-nitrogen and
carbon-oxygen, developed at the Massachusetts
Institute of Technology (MIT), can be used on
a commercial scale for the synthesis of
various heteroatomic compounds. Bayer also
launched its Fluorinox class of fluorination
reagents, which are useful for the synthesis
of chiral fluorides and other difluoride
compounds. The third technology is an
improvement of the asymmetric epoxidation of
unsaturated carbonyl compounds. The use of a
co-catalyst makes the reaction viable on a
commercial scale.
Schenectady
Canada Acquires Chemirco Chemicals
Schenectady Canada, an affiliate of
Schenectady International, has acquired
coatings and alkyd resins producer Chemirco
Chemicals (Toronto). No plants are included in
the deal, but Schenectady will use free
capacity made available with the sale of its
electrical coatings business to Altana Chemie
in 2003 to manufacture the new products.
Cargill
Purchases Duckworth Group
Cargill Inc. acquired the English flavor
company Duckworth Group. The value of the sale
was not disclosed. Duckworth has 270 employees
at facilities in the UK, India, South Africa
and the Middle East. The purchase will add the
flavors to Cargill's existing line of flavor
carriers, texturizers, emulsifiers, functional
ingredients, sweeteners and other specialty
ingredients. The Duckworth business will
become part of Cargill's food system design
platform.
Akzo
Expands Powder Coatings in China
Akzo Nobel will build two new powder coatings
plants in China in 2004. One facility will be
located in Langfang and the other in Guangdong
Province. The company will be relocating its
existing Beijing facility to the 17,000 square
meter Langfang site and building a new plant
at the 22,000 square meter Guangdong location.
Akzo currently has four powder coatings plants
strategically located throughout China.
BASF
Buys Phthalates Business
BASF acquired Sunoco's phthalate plasticizers
business, including its assets, intellectual
property and customer lists, for $91 million
(Euro 72 million). The business had sales of
$150 million in 2002. BASF will take control
of Sunoco's Pasadena, Texas plant, which
manufactures Phthalic anhydride and Oxo
alcohols. The purchase also includes Sunoco's
Phthalate esters, 2-Ethylhexanol and Phthalic
anhydride businesses.
