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EuroAPI launches strategic review

During its full-year results presentation, CDMO and API supplier EuroAPI announced the launch of Focus-2027, a comprehensive project that will seek to unlock profitable growth and increase returns. Key means of achieving include:

* Streamlining the value-added API portfolio by discontinuing 13 with low or negative margins and focusing on highly differentiated, profitable products, such as vitamin B12, prostaglandins, peptides and oligonucleotides

* Having a focused CDMO offer “leveraging our recognised capabilities and technology platforms” *

Ube to absorb APIC

Japan’s Ube Chemical has decided to merge by absorption API Corporation (APIC), the CDMO operation it acquired from Mitsubishi Chemical in December 2022. This will take effect on 1 December 2024 and is expected to have only a minimal impact on Ube’s consolidated earnings.

The company said that it made this decision in order to “further promote the sharing of the proprietary high-level manufacturing and quality control technologies of both companies, accelerate the development of new technologies, expand supply chain networks and leverage the existing bases of both companies”.

AGC completes large-scale line

AGC’s subsidiary AGC Wakasa Chemicals has held a formal ceremony for the completion of a large-scale, multi-purpose production line at its Kaminaka plant in Japan. Scheduled to begin operations in Q1 204, the new line will add 50% to AGC Wasaka’s capacity for CDMO services for the agrochemicals and pharmaceuticals sector.

Advent completes Suven Pharma deal

Private equity investor Advent International has completed the acquisition of 50.1% stake in Indian CDMO Suven Pharma for $5.95/share, as originally agreed in December 2022. This will shortly trigger an open offer for the remaining 26% not being retained by the founding Jasti family. The move follows approval by the Cabinet Committee on Economic Affairs in August.

Indian owner for Briar Chemicals

New Delhi-based Safex Chemicals has acquired UK-based agrochemical CDMO Briar Chemicals from pan-European alternative investment firm Aurelius in a £73 million deal. Safex is itself backed by a private equity firm, ChrysCapital, and supplies crop protection chemicals. This is its first overseas acquisition.

Grace to expand South Haven

W. R. Grace & Co. has announced plans to expand its CDMO facility in South Haven, Michigan, by January 2024. It will add an 18 m3 multi-purpose glass-lined and stainless steel reactor train to two existing trains of the same size, as well as a Hastelloy centrifuge to facilitate product isolation.

Korean firm plans CDMO business

Hanmi Fine Chemical, an API manufacturing subsidiary of Hanmi Pharmaceutical, has announced plans for a new business offering what it calls ‘high-tech CDMO’ services. It will spend €7.4 million to build facilities for them and expects to form partnerships with more companies in 2H 2022, in addition to the ten it already has.

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