Akzo Nobel sets out future strategy

Published: 27-Jul-2001


Arnham, Netherlands-based Akzo Nobel is focusing on being a hybrid company of pharmaceuticals, coatings and chemicals. Cees van Lede, the company's ceo, said, 'Pharma will be keeping up double-digit growth, based on three strong pillars, Organon, Intervet and Diosynth. Our ambition is to be a global top-20 player.'

Chief financial officer Fritz Frohlich said, 'Our strategy is based on value creation. Pharma is now approaching 50% of EBIT. Our ROS target in this area is raised to be above 20%, based on an impressive pipeline of new pharmaceutical products.

'I am very happy that Organon received notification that there will be a fast-track procedure for the new antithrombotic pentasaccharide drug.'

He continued, 'The introduction of Xyvion in the US will be delayed around two years because additional clinical trials are needed. We prefer to take our time for further research instead of giving in for a description that is not satisfying.'

The acquisition of Covance Biotechnology Services, a leading company in the development and manufacturing of biopharmaceutical products, means that Diosynth now has an important bridgehead into the US market. Said van Lede, 'Akzo Nobel will further prune its portfolio and focus on margin improvement. We are facing a tougher economic climate and are determined to deliver a net income in the same order as last year's €950m, which was a record for the company.'

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