 |
|
|
China Experiencing Rapid Growth of Biotech Industry
With approximately 200 dedicated biotechnology
research centers and more than 500 private biotech
companies, China has become an international
competitor in the biotech market. The country is
active in developing and manufacturing
biopharmaceuticals , biotech-based agrochemicals,
and industrial biotechnology products.
Over 20 recombinant pharmaceutical actives have been
commercialized in the country, with expertise in
gene therapy and antibodies predominant. Generic
production accounts for the majority of biotech
activity, though. In 2002, eight out of 10 leading
biopharmaceuticals were manufactured in China. With
many more biotech based drugs coming off-patent in
the next several years, the lower cost position of
Chinese producers is very attractive.
Agricultural applications of biotechnology are of
significant interest in China, with the government
alone investing about $500 million per year. The
country is the fourth largest grower of genetically
modified crops. Researchers are exploring tissue
culture, genetic engineering, marker-assisted
selection, microbiology, genomics, and other
techniques to develop plant species and functional
genes. Crops receiving attention include cotton,
rice, potato, soya bean, cucumber, papaya, maize and
tobacco.
Industrial biotechnology in China has focused on
bioethanol production. The government has launched a
national bioethanol program and hopes to achieve 10
percent blending of biofuels. Significant increases
in capacity will be required to meet rapidly growing
domestic consumption levels. The Chinese government
has also invested in the development of
biodegradable, biotech based plastics such as
Polylactic acid (PLA) and polyhydroxyalkanoates (PHA).
Bioremediation and biocatalysis are other aspects of
white biotechnology under investigation in China.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proposed rules from the U.S. Department of
Commerce would broaden the definition of
dual-use products, commodities and
technology, or materials that have a
legitimate commercial purpose but could
potentially be used by the military of a
receiving country. The rule specifically
applies to goods exported to China and would
cover much wider categories of materials. In
general, exporters will have to certify to
the Commerce Department's satisfaction that
the end user in China is not part of the
Chinese military or working with or to the
benefit of the military. Exporters are
concerned about the length of time it takes
to receive certification or validation. They
are also worried that Chinese traders will
select other suppliers in order to avoid the
issue, and fear that third party specifiers
will choose non-US suppliers for the same
reason. Overall they expect the rule to put
them at great disadvantage to suppliers in
Asia, Europe, and Israel.
Dr. Gregory Hahn became president and COO of
Synthetech effective September 11, 2006. He
succeeded M. "Sreeni" Sreenivasan, who will
remain as CEO until his planned retirement
on October 31, 2006. At that time,
Synthetech's chairman of the board of
directors, Dr. Daniel T. Fagan, will take on
this role. Hahn most recently served as
Organics Global Business Director for FMC's
Lithium Division. He has also worked for
Sigma Aldrich Fine Chemicals and Koch
Chemical Company.
Altana announced that it will begin to
provide "future strategic development" for
its pharma and chemicals businesses by
selling the pharmaceutical operations to
Nycomed for $5.75 billion (Euro 4.5
billion).
Generic firm Mylan Laboratories announced
that it plans to acquire a 71.5 percent
stake in Indian API and final dosage form
producer Matrix Laboratories for $736
million. The purchase will provide Mylan
with access to the emerging markets of
India, China and Africa as well as the large
European market. Matrix in turn gains access
to the U.S. market and expanded production
capabilities.
The boards of both companies have agreed
that, if regulatory approval is granted, UCB
will acquire Schwarz Pharma for $5.6 billion
(Euro 4.4 billion). The merged company will
retain the name UCB. With the deal, UCB will
gain access to several late stage drugs for
diseases it targets as well as expand its
position in the U.S. and Europe. The
transaction is expected to close by the end
of 2006.
Linde finalized the $15.6 billion (GBP 8.2
billion, Euro 12.19 billion) acquisition of
industrial gases firm BOC after receiving
final approval from the U.K. court. Both the
European Commission and the U.S. Federal
Trade Commission awarded conditional
approval to Linde earlier this summer,
requiring the divestment of several
different business units of Linde and BOC.
The European Commission expects the number
of bioethanol plants in the ten new EU
member countries to increase from 4 in 2005
to 20 in 2008. Plants in Hungary and Poland
produced 135,000 tonne of bioethanol in
2005, a number that is predicted to grow to
1.12 million tonne by 2008. Biodiesel
production is also expected to dramatically
increase in Poland and the Czech Republic.
Tightness in supply led to record high
October contract prices for Benzene in the
U.S. Market players also believe that
contract prices rose in response to the
higher spot prices of the previous few
weeks.
Tight supplies and strong demand are driving
spot prices for Propylene to record levels
in Europe. Increasing demand for downstream
products is occurring during a period of
time when numerous crackers are shutdown for
maintenance. U.S. producers are benefiting
from the situation, which is expected to
last at least through October.
With producers operating at 98 percent
capacity, tightness in the Soda ash market
is expected to last through 2007. Annual
supply contracts currently being negotiated
include a price increase to reflect the
short supply. Demand is strong in all
markets (glass manufacturing, chemicals and
soaps and detergents), with consumption for
flat glass production the greatest.
According to Heinz Zourek, director general
of the EU's Enterprise and Industry
Directorate, the chemical industry took a
much too aggressive approach when trying to
influence the European Reach (registration,
evaluation and authorization of chemicals)
legislation. Chemical producers developed a
poor public image, while downstream users of
chemicals remained too quiet.
Shipments into and out of the port of
Marseille were halted temporarily as the
result of a 24 hour strike by port workers
protesting plans to build a new terminal.
Lavera and Fos, two areas within the port
used for berthing chemical tankers, were
affected by the strike. Arkema,
Naphtachimie, Basell and Ineos have chemical
operations near the port. No information was
provided regarding whether any chemical
shipments were delayed.
