BUSINESS
160 NEENIR AIES New top executives named at Shell, OxyChem, and Ecolab Three chemical companies are getting new top executives. Rob Routs, 57, will replaceJeroen van der^Veer, 56, as head of Shell Chemicals, effective immediately. Van der Veer, in the job for just over a year, is replacing Sir Philip Watts, who is stepping down as chairman of Royal Ehitch/Shell in the wake of the company's acknowledgment inJanuary that it had overestimated oil and gas reserves. Routs will retain his responsibility for Shell's oil products business. Meanwhile, Occidental Petroleum appointedJames M. Lienert, 51, president of Occidental Chemical, effective March 1. He replacesJohn L. Hurst, 64, who retired from OxyChem on March 1 and will retire from the parent company at the end of the year. Lienert most recently headed OxyChem's vinyls business. And Ecolab's board has elected Douglas M. BakerJr., 45, as CEO, effectiveJuly 1, succeeding Allan L. Schuman, 69. Baker is now president and chief operating officer; Schuman will remain chairman until at least the end of next year.
Arch to acquire Avecia biocides Arch Chemicals has agreed to acquire Avecia's biocides business for about $210 million. The business, which had sales last year of $137 million, consists of a pool and spa unit and a protection and hygiene unit serving industrial and consumer product makers. The business' key active ingredients are polyhexamethylene biguanide and l,2-benzisothiazolin-3-one. Arch CEO Michael E. Campbell says the purchase will complement Arch's existing chlorine-based pool sanitizer business and extend its biocide business into consumer markets. For Avecia, the deal follows the recent sale of its additives business to Lubrizol and continues a shift toward pharmaceutical markets.
Genzyme boosts cancer program with two deals Genzyme will acquire Ilex Oncology in a stock deal valued at approximately $1 billion 14
C&EN
/ MARCH
8,
2004
to Ilex shareholders. Genzyme also announced it is the lead bidder to purchase Impath's cancer diagnostics business. Genzyme is offering approximately $215 million for the business, which it would combine with its genetics unit. The two acquisitions bolster Genzyme's efforts to build its oncology, biologies, and targeted therapeutics businesses. Ilex' leading product, Campath (alemtuzumab), is an injectable humanized monoclonal antibody indicated in the U.S. for treatment of B-cell chronic lymphocytic leukemia. Impath, which filed for Chapter 11 bankruptcy last September, develops diagnostic technologies that work by gauging drug resistance.
Dow invests in latex emulsions Dow Chemical will spend more than $ 100 million over the next three years to revamp its latex emulsions operations in North America. The company is building a newlatex plant in St. Charles, La., based on a Dow technology that is expected to improve manufacturing pro-
ductivity and product quality The company is also planning improvements at its Alsip, 111., and Sarnia, Ontario, plants. However, Dow is closing plants in Tucker, Ga., and Garland, Texas, in 2006. The company says it cannot afford to reinvest in these sites and will transfer production to St. Charles.
Nordion adds radioisotopes... MDS Nordion has begun commercial-scale production of lutetium-177 and rhenium-186, radioisotopes being investigated for use in newbiotech cancer drugs. Today only two drugs— Corixa's Bexxar and Biogen Idec's Zevalin—combine radiation and biopharmaceutical pro-
standing patent litigation between the two parties regarding their Bexxar and Zevalin radiolabeled biopharmaceuticals. Biogen Idee will pay Corixa and marketing partner GSKa $20 million up-front settlement, as well as future milestone and royalty payments based on Zevalin sales. The firms will also cross-license patents related to the lawsuit.
Chironp Xoma in cancer pact Chiron and Xoma will jointly research, develop, and commercialize a range of antibodybased cancer therapies using targets developed by Chiron BioPharmaceuticals. Under the agreement, the companies will share expenses—including preclinical and clinical development, manufacturing, and marketing costs—on a 70-30 basis, with Chiron taking the 70% share. Xoma will receive an initial payment of $10 million and a loan ofup to $50 million to fund its share of development expenses.
Chemistry firms win financing HELPFUL Nordion radiolabels pharmaceutical proteins at its Ottawa facility. tein therapy (C&EN, Oct. 20, 2003, page 16). They employ Nordion-supplied iodine-131 and yttrium-90, respectively. Nordion notes that high-specific-activity isotopes such as Lu177 are preferred when radiolabeling peptides because smaller amounts ofpeptide can be used.
... radiopharma makers settle Corixa and GlaxoSmithKline have reached a settlement with Biogen Idee that settles all out-
Two fine chemicals companies have won the backing of outside investors. Cedarburg Pharmaceuticals, a maker of active pharmaceutical ingredients based in Grafton, Wis., has received a $7 million investment by LOF Partners, the life sciences investment arm of Sanders Morris Harris Group. Cedarburg says it will use the funds to repay debt and grow its business. Meanwhile, Chiral Quest, a chiral products and technology company, has sold securities to investors in a private placement worth $7.2 million. CEO Alan D. Roth says the funds will strengthen the firm's balance sheet. HTTP://WWW.CEN-ONLINE.ORG
Degussa selling plant to Hexal Degussa will sell its phar maceutical chemicals plant in Radebeul, in eastern Germany to the German drugmaker Hexal, effective July 1. Hexal, which is based near Munich but is particularly strong in eastern Germany, says the site will pro vide a platform for developing its own active substances. For Degussa, the deal is a relief as the company had originally planned to close the site. As Chairman Utz-HellmuthFelcht puts it,
