BUSINESS
CONCENTRATES Investors oppose Shire s acquisition of Transkaryotic Shire Pharmaceuticals' plan to acquire the protein therapy
firm Transkaryotic Therapies (TKT) in a deal valued at about $1.6 billion is meeting stifFopposition from a major investor group. Britannic Asset Management, wruchowm 2% ofShire, s ^ the mid^ sized U.K. drug company is "destroying shareholder value" by overpayingforthe unprofitable firm. In another sign of discontent over the deal, TrCTs CEO, MichaelJ. Astrue, resigned after the sale was announced Stock analysts at Morgan Stanley however, issued a report saying the acquisition will strengthen Shire's existing renal and hematology products and provide a pipeline for future growth. Cambridge, Mass.-based TKT markets Replagal, a genetically engineered fonnof ot-galactosidase Afor treatment of Fabry disease, and will begin marketing Dynepo (epoetin ddta), an anemia treatment, in E u n ^ next year. Shire Matthew Emmens told shareholders last week that the acquisition wiUresdt in $200 milHon in taxbreaks and cost savings. He also pointed to growth potential fromTKTs pipeline, " ^ e x p e c t thatTKTs protein-based drugs and clinical devek^ment pipeline will enable us to diversify and broaden our revenue base while continuing to grow our profits," he said A team of Shire executives is reported to have met with Britannic last week, but M to persuade the group of the logic of the deal
Degussa buying out Cyro stake Degussa is buying out Cytec
Industries' 50% stake in Cyro Industries, a porymethyi methacrylate joint venture the companies have shared since 1976. For $95 million, Degussa will get full ownership of a company that generated about $320 million in safes in 2004 and that has plants in Wallingford, Conn.; Fortier, La.; Osceola, Ark.; and Sanford, Maine. Degussa will integrate Cyro with its odiermethacrylate business, Rohm, which uses the Plexjgjas brand name in Europe. Cytec says it wul use the proceeds to pay down debt from its recent purchase ofUCB's surface specialties business.
Danisco plans Genencor shifts Danisco is planning changes at Genencor International fol12
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lowing its acquisition ofthe enzymes producer. Danisco completed the purchase ofGenencor on April 19 by both buying out Eastman Chemical, Danisco's joint-venture partner, and purchasing Genencor's publicly traded shares for a combined $615 million. Danisco says it has no long-term interest in owning all ofGenencor's fledgling health care business and that it is seeking new shareholders in the operation. In addition, Genencor CEO Jean-Jacques Bienaime has stepped down; he was replaced by Danisco board member Robert H. Mayer.
Nanotech gives coatings the ties that bind BASF has launched what it
describes as a new generation of binders for architectural coatings. In the products, inorganic nanoparticles are ho-
mogeneously incorporated into organic polymer particles of water-based dispersions. The resulting nanocompositeVispersions combine the hardness
and permeability of inorganic binders with the elasticity and water resistance of organic binders, the company says. BASF is one of 23 partners from seven European Union countries in Nanosafe2, a project intended to develop methodsforthe safe use ofnanoparticles. Its main emphasis is on workplace and plant safety.
Study sees mixed impact from REACH
matic impact on small and medium-sized companies. The report examined case studies across the automotive, electronics, flexible packaging, and inorganic materials value chains. According to a joint statement from the European Chemical Industry Council and UNICE, the European employers federation, the case studies show that the cost of REACH willforcecompanies to rationalize their portfolios, that European industry competitiveness needs to be safeguarded, that the loss of chemical substances has to be synchronized with market needs, that a more cost-effective REACH program will foster innovation and business flexibility, and that confidential business information remains a key issue.
Huntsman to hike maleic anhydride
Huntsman Corp. plans to expand its U.S. maleic anhydride capacity by 100 million lb per The industry-commissioned year, bringing its domestic caassessment of the economic pacity to 335 million lb by the impact of REACH—the reg- first quarter of2008. In the US, ulatory programforchemicals Huntsman produces the unsatproposed by the European urated polyester intermediate Commission—was published in Pensacola, Fla/The company last week, and it has something is evaluating several of its sites for everybody. Environmental for this expansion, however/The activists welcomed the report, firm said recently that maleic by consultants KPMG, be- anhydride is one of the best cause it concludes that costs businesses in its portfolio would be at about the level es- (C&EN,April25,pagel3). timated earlier by the commission—$3.2 billion over 11 yearsforthe European chemical industry and $3.6 billion to S7.4 billion for the economy overall. Industry economists Lanxess' previously announced had estimated much higher restructuring in styrenics and costs. Executives at chemical fine chemicals will lead to the companies and their cus- loss ofup to 1,200 jobs, accordtomers, on the other hand, ing to Chairman Axel Heitcan point to conclusions that mann. Restructuring of these REACH as currently proposed two units is particularly urgent, would have a particularly dra- he says, to help the company re-
Lanxess plans job reductions
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gain profitabilityfollowingthe net loss of almost $15 million it posted in its 2004 proformaresults. Savings of roughly $130 milHonayear are required to enable these businesses to catch up with the competition, the company said at itsfirstannual results press conference, held in DusseIdof( German); last week.
Hatco site cleanup set New Jersey's Department of Environmental Protection has approved the $13.2 million cleanup of polychlorinated biphenyl-contaminated soil at the Hatco site in Fords, N J. W.R. Grace,formerowner of the site, and synthetic lubricant maker Hatco Corp., present owner, will fund the cleanup. An unusual feature of the deal wulhokiremediationfirmWeston Solutions and the insurance firm Ace USA responsible for future liability involving the project. Because Grace is bankrupt, the court supervising the firm must approve the agreement at a hearing scheduled for later this month.
Diversa strikes China agreement The biotechnology firm Diversa has reached an agreement with China's Blleomics to develop enzymesforbreaking fluids, which are used to maximize therecoveryof oil or gas from wells. Diversa says its Pyrolase enzymes can do this better than can the chemk^ breakers commonly employed in China. "We see this newrelationshipwith BITeomksasafast stepforDiversa in China," says wmiamH. Baum, an executive vice president. Separately, Diversa reported that pnxluct sales in its first quarter were more than WWW.CEN-0NLINE.ORG
90% higher than in the same period last year.
BASF boosts bioplastic
roporymers, and Oasis wire insulation. When the doubledecker A380 begins commercial flights in 2006, it will be able to carry 555 passengers.
DuPont to work with India lab
BASF will build a plant in Schwarzheide, Germany, for the biodegradable plastic Ecoflex. The facility will have ca- DuPont has signed a research pacityfor6,000 metric tons a agreement with the National year when it opens early next Chemical Laboratory in Pune, year, complementing an 8,000 - India. Thomas M. Connellyjr., metric-ton plant in Ludwig- DuPont's chief science and shafen, Germany Ecoflex is a technology officer, says the biodegradabkcopolyesterused agreement boosts his compaprimarily in blends with re- ny's efforts "to go where the newable raw materials such as growth is and globalize our starch, cellulose, andrjolylactic R&D operaaons^The lab, part acid. "The world market for of India's Council of Scientific biodegradable materials is de- & Industrial Research, has 300 velopingvery dynamically/* says full-time Ph.D. scientists on Dietmar Heufel, head of glob- stafTand 360 doctoral students al business management for with expertise in chemical and Ecoflex.
Materials firms aid new plane
Thai firm sets ethylene boost Thailand's National Petrochemical will expand the size ofthe ethylene plant it is building to 1 million metric tons per year from the 410,000 metric tons it was previously planning (C&EN, Nov. 22,2004, page 32). The project will now cost S760 million, up from S444 million previously, and is expected to start up in 2009. It also includes polyethylene and ethylene vinyl acetate plants. The project is a venture ofNational Petrochemical and its parent PTT,formerlya stateowned company.
BUSINESS ROUNDUP
• PharmaCore has acquired aromatic cross-coupling techThe massive Airbus A380 nology from DSM Pharma flew successfully last week with Chemicals. PharmaCore, a the help of materials from at provider of small-molecule least two chemical companies. chemistry for drug discovery, says the technology will give it an economic edge in producing unsymmetrical biaryl compounds.
DSM's Stanyl nylon engineering polymer became the first thermoplastic used by RollsRoyce in aircraft engines. A Stanyl grade was developed specificallyforuse in the infill panels of the engines to reduce noise and minimize environmental impact. DuPont materials used to construct the plane include Kevlar and Nomex aramidfibers,Tefzel fluo-
materials science. Its first projectforDuPont will concentrate on titanium dioxide.
• Arch Chemicals says the U.S. Defense Department has lifted the suspension of the firm's contract to supply hydrazine propellants beginning in 2007. The move came after the department denied a competing bidder's protest. • Dow Chemicals purchase of part of DuPont Dow Elastomers has been cleared by the European Commission. The commission cleared DuPont's takeover of the other part of the venture in mid-April. • Bayer and Asahi Glass have signed a license agreement
on double metal cyanide polyol technologies. Bayer is allowing Asahi to sell such polyols worldwide, while Asahi is allowing Bayer to sell the polyols in Japan using its Preminol technology • GlaxoSmithKUne has reached a consent decree with FDA regarding its Cidra, Puerto Rico, plant, where production of Paxil CR and Avandamet was halted in March. GSK says it has determined the manufacturing problems and is remedying them. The firm expects to resume making the two drugs by midyear. • Lyondell Chemical has expanded capacity in Rotterdam, the Netherlands, for its Arcosolv PM propylene glycol methyl ether solvent by more than 35% to 130,000 metric tons per year. With the increase, LyondelPs global capacity for the product will be 190,000 metric tons. C & E N / MAY 2, 2005
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