Rhodia to reorganise its pharmaceuticals business

In a move to increase the focus on its key markets, Rhodia is to reorganise its activities serving the pharmaceutical sector into a single enterprise. According to chief executive officer Jean-Pierre Clamadieu, the new organisation will be based in the US to enable it to be close to the decision-making process of its major global customers.

The enterprise, which is yet to be named but goes under the working title of 'Rhodia Pharma', is expected to be up and running by 1 January 2003. It will unite the chirals business Rhodia Chirex with the group's pharmaceuticals ingredients manufacturing activities for the production of bulk APIs and part of the key intermediates business Life Science Systems. The new business unit will have annual sales in the region of €350m (US$344m), equivalent to 5% of the entire Rhodia group.

'Rhodia Pharma' will consist of three main areas:

• Custom development, covering Phase 0 through to Phase II. This will consist mainly of the Rhodia Chirex business and is believed to represent big growth opportunities because of the increasing demand for outsourcing.

• Custom manufacturing, covering building blocks and intermediates. 'This is a competitive market,' said Clamadieu, ' and we need to offer differentiating factors, such as greater creativity and greater customer access to technologies.'

• Bulk APIs. Rhodia already has a foot in Asia as a result of recent acquisition in China. Clamadieu said the company would use its Chinese base to offer intermediates and building blocks as a low-cost manufacturer.

The new organisation is expected to appeal to large pharmaceutical manufacturers that are looking to reduce their key supplier base as it will be able to offer custom development through to Phase III manufacture from a single source.

According to Clamadieu, it shows that Rhodia is still committed to the pharmaceutical market and that this refocusing will enable the company to offer a bigger and better range of services.