Dishman signs memorandum of understanding with Solvay
Dishman Pharmaceuticals and Chemicals (DPCL) has signed a Memorandum of Understanding (MoU) with Solvay Pharmaceuticals, of the Netherlands, to acquire the latter's fine chemicals, vitamin D and vitamin D analogues business for an undisclosed sum.
Dishman Pharmaceuticals and Chemicals (DPCL) has signed a Memorandum of Understanding (MoU) with Solvay Pharmaceuticals, of the Netherlands, to acquire the latter's fine chemicals, vitamin D and vitamin D analogues business for an undisclosed sum.
The intended sale is a result of Solvay's strategy to focus on the main therapeutic areas of cardiometabolic and neuroscience treatments and hive off the non-core business.
The Veenendaal site of Solvay Pharmaceuticals houses the business group Vitamins & Chemicals. Main activities of this group are the production, marketing and sales of cholesterol and cholesterol related products. The manufacturing of vitamin D analogues takes place on Solvay's site in Weesp.
All facilities, people and activities located at Veenendaal and technology, patent and intellectual property rights for fine chemicals, vitamin D and vitamin D analogues business will be transferred to Dishman after satisfactory completion of due diligence procedures, approval from the relevant authorities and appropriate employee information procedures. The transfer of ownership will be completed during 2007.
Dishman will retain production of cholesterol and vitamin D analogues at Veenendaal and transfer the vitamin D3 production to its Indian plants.
Dishman has a pre-existing long-term relationship with Solvay for contract manufacturing of a patented APIs and intermediates. In 2001, Dishman and Solvay had entered into a toll manufacturing agreement to convert a raw material supplied by Solvay into an intermediate of vitamin D3. With the experience gained and technology available with Dishman, the acquired business is expected to add considerable value to Dishman's business.
"The acquisition of the cholesterol, vitamin D and vitamin D analogues business is a step in the right direction," said J. R. Vyas, managing director of DPCL. "It will not only increase the basket of products of Dishman but also bring new customer relationships."