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May 2009
  Feature Article

U.S. Earmarks $1 Billion for Swine Flu Vaccine Development

According to numbers recently released by the World Health Organization (WHO), the new H1N1 flu has reached 42 countries, with 11,168 cases confirmed by laboratory tests, and 86 deaths. The CDC reported there have been 6,552 confirmed and probable cases in 48 states and Washington, D.C., with nine deaths. The disease’s future course and severity remain uncertain. After much pressure from health officials all over the world, the WHO decided to alter its criteria for declaring a pandemic, taking into account both the severity and geographical spread of the disease. While the flu has been relatively mild so far, the current pandemic alert stands at level 5, one notch shy of a pandemic.

As the disease continues to spread, the U.S. government has set aside $1 billion to launch development of an H1N1 swine flu vaccine. The source of the money is an existing federal fund for pandemic flu and preparedness. It will be used for both clinical studies conducted this summer and for the production of two bulk ingredients that will be placed in a federal stockpile. Should officials decide to proceed with a large-scale vaccination program, the bulk ingredients developed will be used. While this newest move marks progress towards vaccine development, it doesn’t mean that the government has plans to definitely mass produce shots. Instead, the actions will help prepare for vaccinations if needed. This move also helps alleviate the risk involved for the production of ingredients for a vaccine that may or may not end up being used. The Department of Health and Human Services is placing orders for ingredients with those manufacturers it already has under contract. These same manufacturers were originally focused on production of the H5N1 or avian flu vaccine.

Of the funds set aside for vaccine ingredient production, Novartis AG will receive $289 million, Sanofi Aventis SA will receive $191 million, and GlaxoSmithKline PLC will be given $181 million. Another $150 million will be directed to additional manufacturers and others for production of pilot lots of vaccine. It will also pay for clinical studies to determine the vaccine’s safety, proper dosage and whether adjuvants are necessary. Adjuvants are ingredients that improve the immune system’s response, reducing the amount of active ingredient needed for the vaccine.

Two candidate viruses that could be used to make a vaccine are currently being analyzed by scientists at the CDC. The plan is to send one or both to manufacturers so that production of pilot lots may begin.


 

  Famous Quotes

Famous Quotes of the Month
 

"Just when I think I have learned the way to live, life changes."
- Hugh Prather

"Life is change. Growth is optional. Choose wisely."
- Karen Kaiser Clark

"Courage is the ladder on which all other virtues mount."
- Clare Boothe Luce

"As we acquire more knowledge, things do not become more comprehensible, but more mysterious."
- Albert Schweitzer

"We owe almost all our knowledge not to those who have agreed, but to those who have differed."
- Charles Caleb Colton

"To lead the people, walk behind them."
- Lao-Tzu

"The toughest thing about success is that you've got to keep on being a success."
- Irving Berlin

"A successful man is he who receives a great deal from his fellow men, usually incomparably more than corresponds to his service to them. The value of a man, however, should be seen in what he gives and not in what he is able to receive."
- Albert Einstein

 


 


 


 
 Imponderables

What Does the Word Proof Mean on a Bottle of Liquor?

The term proof that is found today on every bottle of liquor dates back centuries. In earlier times, there was no scientific way to find out how much alcohol was in liquor. While the first hydrometer was invented by John Clark in 1725, it wasn’t approved for official use by the British Parliament until the end of the century. In the interim, purveyors of spirits needed a way to figure out alcohol content while tax collectors had to determine precisely what their entitled share of liquor sales was.

The first method developed by the British was ingenious yet imprecise. Dealers who bought and sold spirits tested them by soaking gunpowder in the beverage and then lighting it. Someone had figured out that the powder would catch fire if the liquor contained more alcohol than water. The test was therefore considered “proof” that the drink was strong; those that allowed the gunpowder to ignite were called “100 proof”.

The word proof means something different these days. In the U.S., proof is simply double the alcohol percentage volume. So if a drink contains 40 percent alcohol, it's called "80 proof." The British proof is the equivalent of 114.2 U.S. proof. The most powerful liquor in the world is an American alcohol used in cordials. It measures 190 proof or 95 percent pure alcohol.

 


 
 Companies

Chemical Information Services Releases Latest Version of DWCP on CD-Rom

 
Chemical Information Services'' latest version of the Directory of World Chemical Producers (DWCP) CD-Rom is now available. When it comes to finding worldwide producers of chemical raw materials, there's no better resource. This invaluable search tool enables users to search by chemical name, country, CAS number, functional group and manufacturer.

The CD-Rom version puts four decades of research and information at the user’s fingertips. It provides essential data for more than 214,000 product titles, including 112,000 synonyms, along with full contact details for over 15,000 producers in 101 countries. With the addition of the SearcHelper feature, the search process is further streamlined, with scroll down menus for searching by chemical name, company and CAS number. 


 

BioNeutral Group, Inc. Sells Its Mold Formulation

BioNeutral Group, Inc. has announced a Letter of Intent with Mr. Mold LLC. The chemical technology-based Life Science company seeks to commercialize its chemistry-based technology with the New Jersey based mold remediation company. Under the agreement terms, Mr. Mold will begin utilizing BioNeutrals’ unique formulation designed for use with mold and mold spores. BioNeutral's formulation significantly decreases the traditional chemical contact penetration periods. The result is faster operation and more competitive pricing in the market. In addition the technology produces no residual odors. BioNeutral’s Ogiene-M formulation instantly addresses the odor and stains caused by mildew, mold, and mold spores before they get worse. It also helps minimize the damage in the event of their return. The formula is environmentally friendly, and is quickly biodegradable with no hazardous pollutants

 

Hexcel Gets Approval for Plant in England

U.S. chemical giant, Hexcel has received approval from officials in England to build a carbon fiber plant at its Duxford site. The plant would store as much as 400 metric tons of acrylonitrile, a flammable liquid classified in the U.S. as a possible carcinogen. The plant won backing despite opposition from neighbors claiming they are being put at risk. Supporters of the project claim that the plant will bring benefits to the local economy as well as the country and compared the risk level to that of being hit by an aircraft dropping out of the sky. Hexcel said that this expansion will create 80 permanent jobs and 100 construction jobs.

 


 

Cereplast Has a New Strategic Plan

 

Cereplast, Inc. has announced a new strategic plan in an effort to accelerate its growth. The leading developer of proprietary bio-based sustainable plastics will focus on marketing strengths and proprietary product development. The company will also enter into manufacturing supply agreements with large plastics compounders, the goal being to substantially reduce the cost to produce plastic resins and provide sufficient capacity to service new contracts with major customers. Cereplast formulates its bio-plastic resins to be compatible with existing manufacturing processes. By utilizing large compounders to handle the manufacturing, the company can transition to product development and solution implementation. Following a business model used in the semiconductor industry, Cereplast’s focus will aim at product development and marketing, with an approach that allows for a high degree of flexibility and innovation, with room for adjustment to ever changing markets.

Implementation of this plan will require Cereplast to reduce its in-house manufacturing capacity and manufacturing-related workforce. The company currently has production facilities at its headquarters in Hawthorne, California and a yet-to-be opened facility in Seymour, Indiana.


 


 
 Personnel

Compass Minerals Names New Board Member


Paul S. Williams was named to the board of directors of Compass Minerals earlier this month. He will serve on the company's audit and compensation committees. Mr. Williams possesses 20 years of broad legal and business experience counseling diverse service and manufacturing businesses. He is currently a partner in the firm of Major, Lindsey & Africa. In addition, Mr. Williams has been a member of the board of directors of State Auto Financial Corporation since 2003 and of Bob Evans Farms since 2007.



Terra Nitrogen Company, L.P. Makes Changes to Its Board

Leading manufacturer of nitrogen fertilizer products Terra Nitrogen Company, L.P. recently announced changes to its board of directors. Anne H. Lloyd has been elected and will chair TNCLP’s Audit Committee. Ms. Lloyd has held senior financial and accounting positions within the industry. Since 1998, she has been with Martin Marietta Materials, Inc. and has served as its Senior Vice President and Chief Financial Officer since 2005 and was elected Treasurer in 2006

LyondellBasell Appoints Group CEO

 

James Gallogly has been appointed group CEO of Netherlands-based petrochemicals producer LyondellBasell Industries. He succeeded Volker Trautz who recently announced his retirement. Mr.Gallogly comes to the company from ConocoPhilips, where he served as vice president of exploration and production. The terms of Gallogly’s appointment were subject U.S. bankruptcy court’s approval.

Sigma-Aldrich Chairman Retires

 

David Harvey has retired as chairman of Sigma-Aldrich Corporation. Mr. Harvey has held the position since 2001 and joined the company in 1974. He has served as chief operating officer, president and chief executive. He began his career with the company as senior executive in charge of European operations, served as president of Aldrich Chemical in Milwaukee and executive vice president and chief operating officer of Sigma-Aldrich. Current president and CEO, Dr. Jai Nagarkatti, has been elected by the company’s directors to serve as chairman.

 


 
 Business/Finance
Arkema Restructuring Regional Operations



French specialty chemicals major Arkema recently announced restructuring plans for its North American operations. The company plans to cut 200 of the current 2,300 positions in the U.S. and Canada. Affected by the cuts would be the six different Arkema sites in the U.S. as well as regional head offices in Philadelphia, Pennsylvania and Oakville, Ontario. In spite of the job cuts, the company does not plan to close plants. It is maintaining all of its sites and production capacity, but reported that there will be variations in production levels, depending on various factors such as economic conditions. 


 

Oxea Acquires Esters Plant

German chemical producer, Oxea has acquired ExxonMobil’s esters plant in the Netherlands. The deal is expected to close in July. The company plans to continue esters production at the plant as well as production of specialties used in plasticizers, flavors and fragrance pharmaceuticals and lubricants. Oxea feels this improves its supply capability, making it more independent while giving it the major advantage of producing the base materials for ester production. The plant currently employs 19 people.

 

Bayer MaterialScience Investing in New Production Line

Bayer MaterialScience has reported it is investing $3.07m in a new PU dispersions production line at its German site. While production capacity for the Dormagen Chempark facility was not disclosed, the company said that products from the new site will be used to make medical products and cosmetics. Presentation of the company’s Baycusan product line marked its introduction into the cosmetics and personal care market last year. The new facility will help the company prepare to meet the needs of the market. The products were formally introduced to North American markets at the recent Society of Cosmetic Chemists (SCC) Suppliers Day, with the next launch planned in South America during coming months.
 


 

DuPont Plans Additional Job Cuts

 

U.S. chemical giant DuPont reported that it plans to eliminate an additional 2,000 jobs. These latest reductions bring the company’s total to 7.5 percent. With these job cuts and related plant closings, DuPont will save more than $70 million this year and $225 million per year by the end of 2010.

Last quarter, DuPont’s sales volumes declined 19 percent, with decreases in every segment except agriculture. As demand continues to decline in automobile, construction and industrial markets, the company takes additional cost saving measures in the U.S. One involves taking a pretax charge of $340 million to $390 million in the second quarter, with 60 percent cash. DuPont will be eliminating additional jobs in all of its regions, in all units with the exception of agriculture. In the second quarter, charges amounted to approximately $225 million for severance and related benefits, asset write-offs of $145 million and $35 mission for factory dismantling and accelerated depreciation.

 


 

Johnson & Johnson to Acquire Cougar Biotechnology

In a move to strengthen its position in the global oncology market, drug maker Johnson & Johnson is acquiring cancer drug developer Cougar Biotechnology. J&J will tender all outstanding shares of Cougar in the $970 million cash purchase.

This deal is one of many in recent months, with big pharmaceutical companies acquiring those smaller companies with promising products. As a result of the downturn in the global economy, many development-stage biotechnology companies have had to look for mergers or partnerships as a way to weather the challenging financial situation. The transaction is expected to close in the third quarter and will reduce J&J’s earnings per share by 2 cents to 3 cents. It is conditioned on clearance of customary closing conditions.

Cougar is currently conducting two pivotal-stage trials. The first is an experimental treatment for prostate cancer and the second involves  treatments for breast cancer and multiple myeloma.
 


 



 
 Fine & Specialty Chemicals

Cognis Presents Refreshing Newtrition at Vitafoods

Cognis’ new Newtrition™ campaign was recently unveiled at Vitafoods in Geneva. Cognis Nutrition & Health is capitalizing on the wellness trend while helping their customers develop products with true wellbeing benefits that will refresh the market and appeal to consumers who want to feel good.

A number of new products were presented. The first products demonstrated were two drinks based on Plantalin™ Lemon Balm, the main ingredient has dose-dependant effects which can either increase alertness or have a calming effect. Orange ice cream with Xangold ® natural lutein esters offers consumers sun protection. The powerful beauty booster has important skin protective benefits, including protection against UV damage. Latte macchiato ice cream with Omevital™ Gold contains omega-3 fatty acids EPA(Eicosapentaenoic acid) and DHA (Docosahexaenoic acid), which have emerged as vital nutrients for human development and health. Cognis Nutrition & Health and its subsidiary Napro Pharma developed Omevital™ liquid supplements. The ready-to-market liquid supplements can be taken with a spoon or poured over food. They are produced through a carefully controlled process to eliminate supply and manufacturing complexity and ensure speedy delivery to market. Formulations take place at the in-house, state-of-the-art facilities in Norway, in accordance with Pharma GMP standards. Bottling options include glass, PET or aluminum in different sizes. Napro Pharma maintains a high level of reliability and sustainability through guaranteed supply and extensive quality control on each batch.

 


 

 

Clariant Aims at Personal Care Markets


Specialty chemicals expert Clariant launched a concept strategy to address the particular needs of fast-growing personal care market segments. The company’s concepts for men’s care and wet wipes apply its expertise as well as its broad portfolio of innovative skin care and hair care lines, and extensive manufacturing and R&D support.


Clariant’s men’s care concept focuses on the broadening cosmetics product range for men with product lines for cleansing, shaving for sensitive skin, hair care, and skin, face and sun care. It provides for customer ease of choice and product development efficiency through clear identification of the specific ingredients and formulation from the company’s broad personal care product portfolio that are suited to men‘s care applications.

Clariant’s wet wipe concept is driven by the anticipated general increase in other wipe applications such as facial cleansing, make-up removal, personal hygiene, etc. The goal is to ensure the end-manufacture of convenient cosmetics without compromise and it focuses its complete portfolio of ingredients to bring maximum quality and convenience to manufacturers and consumers.

The company’s Personal Care division is a leading supplier to the Personal Care industry with a global network of production and R&D sites. Clariant’s product ranges include emulsifiers, rheology modifiers, conditioning agents, additives, actives ingredients and cosmetic preservatives all of which provide performance enhancement to formulations using the latest technology and natural ingredients.

 


 


 
  Pharma

Lonza and Teva Receive European JV Approval

The European Commission has approved the joint venture between Swiss fine chemicals firm Lonza and Israeli drug major Teva. The two companies will develop, manufacture and market multiple generic equivalents of a selected portfolio of biologic pharmaceuticals. The joint venture was announced in January and all formalities related to the establishment of the joint venture have been completed. Lonza supplies fine chemicals to the pharmaceutical, life science and healthcare industries and Teva is the world’s largest producer and supplier of generic drugs. 


 

Pharmion Executive Team Launches New Cancer-Focused Biotech Company

 

Several of the key executives that ran Pharmion Corporation have formed a new cancer-focused biotech company. Boulder, Colorado-based Clovis Oncology, Inc. has been launched with $145 million in funding. The new company’s focus will be much the same as that of Pharmion. It will buy early-stage experimental cancer therapies, expand on drug development, coordinate the regulatory approval process and then prepare drugs for sale in both U.S. and international markets. Its business model aspires to fill a need in the biotech industry. There aren’t many companies funded for early-stage drug development. With the number of anti-cancer agents and the proficiency of its founding members, Clovis’ entry into the market is especially suitable.
 


 

Vaxart Starts Animal Testing for Possible H1N1 Vaccine

 

San Francisco, California-based Vaxart, Inc. has moved a possible swine flu vaccine to the animal testing stage. Since the strain was first reported in April, several biotech companies have focused on developing such a drug. While the company reported it could produce its first batch of the human vaccine by August, it would be the fall or later before human testing would commence. The CDC isolated a strain of the H1N1 virus for shipment to vaccine developers, but it is taking about six months before the large amounts of the vaccine are available. Vaxart has used the genetic sequence key gene contained in the virus to produce a synthetic version that could expedite the production process. The company’s vaccine candidate was developed 25 days after it began the process. Vaxart’s vaccine is a capsule and would serve as an important tool for swine flu pandemic preparation, thanks to the speed with which it could be delivered.


 

 
 Agrochemicals

URALCHEM Announces First Quarter Results

Russian nitrogen and phosphate fertilizer producer, URALCHEM recently reported its production results for the first quarter of 2009. During the first three months of the year, the company produced 1.135m tonnes of commercial products, an amount down 9% from the same period of 2008. When compared to the fourth quarter of 2008, the first quarter 2009 results demonstrate positive dynamics. Despite the current global economic situation, the company’s production facilities were operating at full capacity. While ammonia production was down 44%, urea output was 44% higher. Ammonium nitrite production increased 6% during the period. Total production of nitrogen fertilizers, which form the company’s key product line, was 12% higher in January-March 2009. Phosphate fertilizers production was down compared with the same period of 2008. Diammonium phosphate (DAP) production was also down from first quarter of 2008 production. The company did not produce monoammonium phosphate (MAP) in the January-March 2009 period. It reported that the decrease in phosphate fertilizer production was due to difficulties in purchasing phosphate rock, the key raw material.
 


 

   

Aditya Birla Nuvo Limited Restarts Fertilizer Complex

 

Following a shut down earlier this month, India’s Aditya Birla Nuvo Limited (ABNL) has resumed production at its ammonia-urea complex. It was shut down due to an equipment breakdown. The site, located at the Uttar Pradesh State of Jagdishpur, is comprised of a 501,600 tonnes/year ammonia plant and an 864,000 tonnes/year urea plant. The ammonia output produced is used primarily for the company’s in-house urea production.

This was the third time in three years that technical issues have forced ABNL to shut down. The collapse of a urea cooling tower caused the company to shut down in 2007 while a fire temporarily forced them to do so in June of 2008.

In results released last month, ABNL reported that its fertilizer division has more than doubled its operating profits to $16.4m (814 Rs) in the fourth quarter (January-March 2009).
 
     

 
 Commodity  Chemicals

PPG Industries Upgrading U.S. HCI Plant

PPG Industries has made plans to upgrade its Natrium, West Virginia plant. To meet regional demands for higher quality hydrochloric acid (HCI), the company will invest $6.0 million to install a new acid burner. While PPG has not disclosed capacities, the new unit is expected to become operational by the end of 2009. The company feels this investment will enable it to provide better service to its customers with a better, more consistent product as well as secure a long-term outlet for the chlorine produced at the Natrium facility.

 


 


 
   Paints & Coatings

Cytec Launches New Polyester Resin Powder Coatings

Global specialty chemicals and materials company Cytec Industries Inc. has introduced its CRYLCOAT® E04155 carboxylated polyester resin for use with Primid XL-552 in the production of powder coatings. It is designed for use in HAA powder coatings at a 93/7 ratio. With cure schedules based on object temperature, the company reported that formulations based on this product can be cured at 160ºC for 10 minutes and 150ºC for 15 minutes. CRYLCOAT® is designed for outdoor durable Primid powder coatings that can cure below 170°C. It is for use with hydroxylakyl amide crosslinkers such as Primid XL-552. This resin demonstrates excellent flexibility with good weathering and chemical resistance. Cytec feels that this resin is perfect for formulators that need an additional cure option out of their current HAA powder coating choices. In addition, it is appropriate for formulators that need an outdoor durable powder coating that is not cured with TGIC, but with less energy use. Coatings formulated with the resin exhibit good smoothness and chemical resistance while having excellent flexibility. The company reported that testing showed that an RAL white coating achieved 0 T-bends at a cure schedule of 160ºC for 10 minutes.


BASF Coatings Launches New Production for Basecoats


BASF Coatings has expanded its waterborne basecoat production. The industry giant launched new production and lab capacities for basecoats at its Würzburg site earlier this month. The launch comes about one and one-half years after construction began, with the overall investment amounting to about 21 million euros. In the face of current economic conditions, BASF continues to pursue a long-term strategy, expanding on its eco-friendly technology for waterborne basecoats. A major advantage to this technology is the reduction in solvent emissions. In waterborne basecoats, water replaces the majority of the organic solvents that solvent borne basecoats contain.

Thanks to the expanded lab capabilities, BASF will be able to respond to customer needs quicker and with greater flexibility. BASF Würzburg employees developed the waterborne basecoat technology in the mid-1980s and continue to set global standards with respect to product properties and ecological quality. The expansion has boosted the overall production capacity at the Würzburg site by around 30 percent. Coatings are produced in a very efficient manner, utilizing state-of-the art methods.

 


 


 
 Plastics

HallStar Acquires Two Plastic Additives Businesses

Chicago, Illinois-based HallStar Co. has purchased two plastic additive businesses from Dow Chemical Co. While the purchase price was not disclosed, customer lists and formulations were included in the deal. The product lines acquired are Dioplext-brand polymeric plasticizers and Rezilubet-brand polymer additives. The purchase provides an opportunity to strengthen HallStar’s global presence. The product lines are natural additions to the company’s specialty ester technology. Dioplext additives are used in end products like food wrap and industrial hoses and tubing while Rezilubet additives are used in lubricants to provide valuable properties for formulators of biodegradable lubricant base stocks. HallStar employs 200 and posted $135 in sales for 2008. The company supplies personal-care ingredients and polymer additives.
 


 

Sarlink Plans for Major Expansion

Sarlink has opened a new production facility in Genk Belgium. The new site will provide timely expansion and double the company’s production capacity. Demand for Sarlink’s Thermoplastic Vulcanisate (TPV) material solutions has increased, thanks to the material’s balance of benefits and properties.

While TPV is technically part of the Thermoplastic Elastomers (TPE) product group, it is the only true elastomeric thermoplastic. The unique and versatile product has rubber properties yet can be processed like plastic. Plastic converters can enter the traditional business arena of rubber processors, resulting in reduction of system costs. The competitive position of Sarlink’s customers in the marketplace is therefore improved.

TPV is a technology driven-product with a market that has realized significant growth. Sarlink has also grown, making significant investments in resources and application development facilities necessary for conversion of other materials to TPV.
 


 


 
     Cosmetics

Demand for Silicone in Cosmetics Industry on the Rise


U.S. silicone producer Momentive Performance Materials recently reported it is beginning to see an upswing in the demand for silicone and silicone-derived products. After a slowdown in fourth quarter 2008 and early this year, businesses in the cosmetic and personal care industry are picking up demand. In the Americas and China demand has increased, however it remains soft in Europe and Japan. While many companies have implemented cost-cutting measures this year, most of Momentive’s customers are striving to stay competitive and remain active in development of new cosmetic and personal care products. The company reported it has launched six new products for personal care and cosmetics this year.

 


 


 
 General

ACC Taking the Social Media Route to Communicate

The American Chemistry Council (ACC) anticipates major changes over the next year in the way it communicates to the masses. The organization recently announced it will increase its use of various social media vehicles to get messages to the public while decreasing and de-emphasizing its national television and advertizing campaigns.

The ACC has already established a presence on Facebook, under “American Chemistry” with its first message post to the site recorded in September of 2008. The organization also has a page on another social media hotspot, Twitter. The ACC is also active in the blogging community, having hosted a “blog summit” recently, with the topic of plastics recycling.

Along with its member companies, the ACC’s goal is to take a proactive stance when it comes to the awareness and activism of consumers, focusing more on advocacy and social media. The hope is to work with those individuals who may not like what the ACC does while gaining an understanding of their position. The final result being moving forward for the good of the industry and society.
 


 


 
In This Issue

 
Featured Article
 
 
Famous Quotes
 
 
Imponderables
 
Companies
 
 
Personnel
 
 
Business/Finance
 
 
Fine & Specialty Chemicals
 
 
Pharma
 
 
Agrochemicals
 
 
Commodity Chemicals
 
 
Paints & Coatings
 
 
Plastics
 
 
Cosmetics
 
General
 
 

 
  






 

 

 
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