SAFC sets up new entity for biopharma business
SAFC, part of the Sigma-Aldrich Group, has established a new business segment to embrace its biopharma development and cell culture-related manufacturing services. SAFC Biosciences joins SAFC Pharma, SAFC Specialties and SAFC Hi-tech, and marks the completion of Sigma-Aldrich's development strategy that began in 2000 and took SAFC into the top 10 global fine chemical companies with annual sales of US$425m.
The former JRH Biosciences business, which was acquired in January 2005, transferred to SAFC Biosciences from the beginning of September. The new segment will become a legal entity on 1 January 2006. The business recorded sales in excess of $150m in 2004.
Headquartered in Lenexa, Kansas, SAFC Biosciences has five production facilities in the US, Europe and Australia and employs 650 people. It provides an integrated services package in mammalian cell culture media development, supports 63% of approved cell culture-based drugs and is the primary vendor to more than 50% of approved drugs.
Having achieved the goals set down in its 2000 development plan, SAFC has set itself further ambitious targets for the next five years. These include an overall annual growth rate in excess of 10% excluding growth from acquisitions; strengthening its position as the number one cell culture provider; improving its position in the materials science sector; becoming best-in-class in the pharma sector; revitalising the specialties business; and maintaining its position among the top 10 fine chemicals businesses.
It aims to achieve these goals by focusing on high growth sectors, investing in technologies and further developing the supply chain. It is also looking to add more cGMP production capacity to enable it to grow with its customers, build its position in international markets and be more responsive to changing customer requirements.
According to president Frank Wicks, SAFC is the second largest business unit with the group and represents around 25% of the total business, but he foresees it becoming the largest element with a share of 30-35%.
'There are a lot of opportunities out there,' he said. 'Sigma-Aldrich has a culture of not saying no, but we cannot do it all, so we need to focus on pharma, bioscience and hi-tech.'