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n e w s of t h e w e e k Explosion rips pesticide packaging plant in Arkansas
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A May 8 fire and explosion at a BPS Inc. pesticide packaging plant in West Helena, Ark., killed three firefighters, injured 17 others, closed a portion of the Mississippi River for about 12 hours, and caused the evacuation of the plant's neighbors, including two hospitals. The fire was extinguished six days later. Although the exact cause of the blaze is under investigation, BPS employees had noticed smoke—some reports say from a smoldering bag of azinphos-methyl, an insecticide that is a cholinesterase inhibitor— called the fire department, and evacuated the plant. The three firemen were killed when a cinder-block wall blew out from the force of an explosion. Injuries sustained by the others on the scene are not considered life threatening. Elisabeth Kirschner
Dow, Novartis make agrochemical deals Last week, Novartis and Dow Chemical each staked a larger claim in the crop protection business, signaling high expectations for a healthy, albeit competitive, future. For its part, Novartis agreed to acquire Merck's crop protection business, and Dow agreed to buy from Eli Lilly the 40% of joint-venture DowElanco that it does not already own. For a business it covets, price apparently is no object for Novartis: The Basel, Switzerland, life sciences company will pay $910 million for Merck's crop protection business, which had sales of $200 million in 1996. The Merck crop protection unit holds a strong U.S. position in insecticides and fungicides and so represents a new plum to the already formidable crop protection businesses of the merged Ciba and Sandoz. Sales and gross profits of the Merck business have grown 12% per year for the past four years. In 1996, crop protection accounted for about 73% of Novartis' $5.2 billion in agribusiness sales and 20% of its overall sales. Novartis' ag product sales are largely outside the U.S. Novartis also has the largest R&D b u d g e t about $465 million last year—in the crop protection industry. Merck's decision to sell the business came as no surprise; the Whitehouse, N.J.based pharmaceutical company said it was looking for a buyer after agreeing to create 12
MAY 19, 1997 C&EN
a joint venture, called Mcrial Animal Health, with Rhone-Poulenc (C&EN, Jan. 6, page 8). Merck began increasing its focus on its drug operations with the sale of its specialty chemicals operations in 1995. Contributing to the value of Merck's business is a relatively new chemistry and line of acaricide (for mites and ticks) and insecticide products based on the active ingredient abamectin. Abamectin is a microbially derived fermentation product with a very selective and safe profile. "To spend four-and-a-half times revenues reflects very high expectations for major new products," says industry analyst Sano Shimoda, president of HioScience Securities, Orinda, Calif. "Obviously, it's a strategic asset" for Novartis, Shimoda adds, one that will allow the company to expand into major crop markets such as cotton. Hie creation of Novartis "put pressure on competitors and raised the bar in R&D, marketing, agricultural biotechnology expertise, and seed production," and the Merck acquisition further "increases its competitive position." Novartis will get about $21 million in product inventories, but it will not acquire Merck's manufacturing facilities. 'Hie companies have signed a long-term supply agreement. Novartis will offer jobs to all 145 Merck crop protection employees. The deal, expected to be completed this summer, is subject to regulator)' approval. In contrast to the Novartis deal, Dow will pay $9(K) million in cash and $300 million in undistributed earnings for the 40% DowElanco share. DowElanco had 1996
sales of $2 billion, which means that Dow is paving one-and-a-half times sales for the 40% stake. DowElanco was formed in 1989, combining the plant sciences businesses of both parent companies as well as Dovv's specialty pest management business. It discovers, develops, and makes agricultural and noncrop products for weed, insect, and plant disease management. DowElanco also is the majority owner of Mycogcn Corp., the agricultural biotechnology company. Ami Thayer
Artificial enzyme catalyzes steroid hydroxylation Chemists at Columbia University have created a synthetic catalyst that mimics the process by which cytochrome P-450 enzymes oxidize steroids. The work, carried out by chemistry professor Ronald Breslovv and coworkers, is a key advance in long-standing efforts to create artificial enzymes. Researchers hope such studies will lead to the ability to design customized catalysts for important reactions. Several types of artificial catalysts are under active study—such as catahtic antibodies and synthetic peptide catalysts, as well as cytochrome P-450 mimics. Cytochrome P-450s are metalloporphyrin enzymes that catalyze steroid reactions.
