If there was a drain on chemical trade in January, it was fertilizers. The value of fertilizer exports fell 17% on a year-to-year basis to just $234 million and was off a huge 30% Minimal encouraging news is emerging on from December's $303 million. At the same the chemical trade front. In January, chemi- time, although fertilizer imports fell 18% cal exports were up from a year earlier and from their January 1996 level to $141 milthe chemical trade surplus was in fine lion, they were up 12% over their Decemshape, too. However, the data tell a different ber level. The result was that the January story when looked at on a month-to-month fertilizer trade surplus of $93 million was down 55% from December and down 16% from Cosmetics led January annual export growth January last year. % change % change There is, howExports Imports ($ millions) Monthly Annual ($ millions) Monthly Annual ever, a silver lining to the fertilizer Cosmetics $ 377 5.9% 22.8% $ 185 -9.8% 2.8% cloud. Fertilizer 235 Dyes 5.4 21.1 187 8.1 16.9 producers likely 234 -29.7 -17.3 Fertilizers 141 11.9 -18.0 have drastically re342 -16.2 Inorganics 469 1.1 16.1 0.6 Medicinals 645 duced exports for 10.6 619 -10.8 19.0 14.8 1,236 Organics 3.4 1,399 4.9 0.5 -2.0 the same reason 1,353 Plastics 4.4 640 4.4 -0.9 12.3 that distributors are Other 786 -8.0 1.1 11.1 379 13.6 importing more—a predicted strong TOTAL $5,208 -0.8% 0.9% 5.7% 7.5% $4,019 year for fertilizer Source: Department of Commerce sales and use in the U.S. (see page 13). If January fertilbasis, one that continues the relatively poor izer exports had held at December levels, showing made by chemical trade in the lat- the chemical trade surplus for January ter part of 1996, a year marked by the low- 1997 would have been up 3% over January 1996, instead of down 5.9%. est chemical trade surplus since 1993. William Storck Total U.S. chemical exports in January rose 7.5% from January 1996 to a value of $5.21 billion, according to the latest data from the Commerce Department. At the same time, imports were up 5.7% to a value of $4.02 billion. The resulting $1.19 billion trade surplus was 14% ahead of that in January 1996. On a month-to-month basis, however, results were not so good: Exports fell Publishing giant Reed Elsevier will pay a 0.8% and imports rose 0.9% (data have tremendous premium to buy scientific not been seasonally adjusted). That led to software and database developer MDL Ina 5.9% decline in the trade surplus from formation Systems for $320 million. The December's level of $1.26 billion. acquisition will allow the company, jointly On a year-to-year basis, exports of cos- owned by British firm Reed International metic chemicals posted the greatest per- and Dutch firm Elsevier, to expand its efcentage gain, up almost 23% to $377 mil- forts in electronic scientific publishing. lion, while plastics showed the biggest dolReed Elsevier will pay $32 per share, an lar growth, up $148 million to $1.35 billion. 86% premium on MDL's stock price as of That 23% growth spurred cosmetic Friday, March 21, the last trading day bechemicals to the top rank in terms of both fore the offer was made. On Monday, percentage growth and value among con- March 24, MDL's stock price jumped 81% tributors to the trade balance. On an annu- to $31^ per share. The acquisition still is al basis, their contribution rose 51%, or subject to government antitrust approval. $65 million, to a surplus of $192 million. A "considerable strategic fit" exists On the import side, shipments of me- between the companies, says Herman dicinal chemicals grew the most on a Bruggink, cochairman of Reed Elsevier. year-to-year basis both in percentage and He explains there are "considerable opin dollar terms, up 19% or $99 million, to portunities, particularly in an on-line en$619 million. vironment" to add value through the
U.S. chemical trade picture is cloudy
Scientific publisher Reed Elsevier to add software, database developer
electronic linkage of research and reference data. The San Leandro, Calif-based MDL produces software applications used for managing and analyzing scientific data, including molecular modeling software. Its clients worldwide include many major pharmaceutical and chemical firms such as DuPont, Glaxo Wellcome, Merck, and Monsanto, as well as several biotechnology and drug discovery companies. The 19-year-old MDL had revenues of $53 million for the first nine months of fiscal 1997, which ends March 31, and net income of $8.2 million. The MDL acquisition will place greater pressure on other scientific publishers competing in the burgeoning field of electronic publishing. Elsevier Science, a U.S. subsidiary of Reed Elsevier, already plans to launch an on-line database, called ScienceDirect, in the second half of 1997. Initially, 350 of its life sciences journals are to be accessible. Later, the company will expand the service to include all of its 1,200 journals. Already a profitable business for Reed Elsevier, scientific publishing accounted for about 16% of its $5.27 billion in revenues and 27% of its $1.34 billion in operating income in 1996. The company's other businesses include professional, business, and consumer publishing. In 1996, Reed Elsevier derived nearly onefifth of its overall revenue from electronic information products—an area, says the company, where growth in demand is expected to outstrip other formats. During 1996, the company invested in "new electronic information products and the operating infrastructure to support them." For example, Elsevier Science established regional sales offices and expanded marketing and customer service operations, in addition to its ongoing computer-aided production and electronic data warehousing projects. Ann Thayer
Drug analog regrows damaged neurons An immunosuppressant drug analog that stimulates regeneration of injured nerves without inhibiting the immune system has been synthesized by a team of researchers at Guilford Pharmaceuticals, Baltimore. Given orally, the small molecule aids regrowth of damaged nerves in both the brain and the peripheral nervous system in animals. It also aids regeneration of myelin, nerve cells' insulating wrap. The MARCH 31, 1997 C&EN 7
