Dishman Pharmaceuticals & Chemicals Ltd has signed a Memorandum of Understanding (MoU) with Solvay Pharmaceuticals BV (Solvay), the Netherlands, to acquire the fine chemicals, vitamin D and vitamin D analogues business from Solvay for an undisclosed amount.
As part of this deal all facilities, people and activities located at Solvay's Veenendaal site in the Netherlands and technology, patent and intellectual property rights for fine chemicals, vitamin D and vitamin D analogues business will be transferred to the company after satisfactory completion of due diligence procedures, approval from the relevant authorities and appropriate employee information procedures. The transfer of ownership will be completed during 2007.
The intended sale of Solvay's site in Veenendaal is a result of Solvay Pharmaceuticals strategy to focus on the main therapeutic areas of cardiometabolic and neuroscience treatments and hive off the non-core business.
The company has a pre-existing long-term relationship with Solvay for contract manufacturing of a patented API and intermediates. Further, in 2001, the company and Solvay had entered into toll manufacturing agreement to convert a raw material supplied by Solvay into an intermediate of vitamin D3. With the experience gained and technology available with the company, the acquired business will considerably add value to the company's business.
According toJ R Vyas, managing director of the company, acquisition of cholesterol, vitamin D and vitamin D analogues business is a step in the right direction. It will not only increase the basket of products of Dishman but also brings new customer relationships.
The Veenendaal site of Solvay Pharmaceuticals houses the business group vitamins and Chemicals. Main activities of this group are the production, marketing and sales of cholesterol and cholesterol related products. The manufacturing of vitamin D analogues takes place on Solvay's site in Weesp. Cholesterol is used in pharmaceutical, cosmetic and crustacean feed applications. Vitamin D analogues are used for food and pharmaceutical applications, and fall in the category of high potency products.
The company will retain production of cholesterol and vitamin D analogues at Veenendaal and transfer the vitamin D3 production to its Indian plants.
The company's manufacturing plants and research facilities are spread across two locations in the state of Gujarat, India. The company has an approved US FDA facility and cGMP compliant manufacturing facilities, a dedicated R&D centre equipped with competent technical team and laboratory equipment and a worldwide network in USA, UK, Europe, Middle East, Africa, Japan and China to secure and service customers globally. In 2006, the company acquired Carbogen Amcis, a Switzerland based contract research and manufacturing facility, which is fully integrated.