| Dishman Pharmaceuticals & Chemicals will soon acquire the vitamin and fine chemicals business of the Netherlands-based pharmaceuticals major, Solvay Pharmaceuticals (Solvay), for an undisclosed amount. |
| According to a memorandum of understanding between the two parties, Dishman will take over Solvay’s facilities, people and activities located in Veenendaal in the Netherlands, besides acquiring the technology, patent and intellectual property rights for fine chemicals. |
| After the completion of due diligence and employee information procedures and gaining the approval of relevant authorities, the transfer of ownership will be completed, during 2007, according to Dishman. |
| Dishman will continue the production of cholesterol and Vitamin D at Veenendaal and transfer the manufacturing of Vitamin D3 to its Indian plants. |
| Dishman had acquired Carbogen Amcis, a Switzerland-based contract research and manufacturing facility, in 2006. |
| Sources said the sale was in line with the decision of Solvay Pharmaceuticals to hive off the non-core business and focus on cardio-metabolic and neuroscience treatments. In a similar initiative, about ten days ago, Eli Lilly India had hived off its flagship antibiotic brand Distaclor to Quintiles’ subsidiary Pharmalink. |
| Dishman said it had a pre-existing, long-term relationship with Solvay for contract manufacturing of a patented API and its intermediates. Further, in 2001, they entered into a toll manufacturing agreement to convert a raw material supplied by Solvay into an intermediate of Vitamin D3. |
| The acquisition of cholesterol and Vitamin D business is a step in the right direction, according to J R Vyas, managing director, Dishman Pharma. |
| The site of Solvay Pharmaceuticals in Veenendaal houses its vitamins and chemicals business and mainly manufacturers cholesterol and related products. |
| Cholesterol is used in pharmaceutical, cosmetic and crustacean feed applications. Vitamin D analogues are used for food and pharmaceutical applications and come under the category of high-potency products. |
Source : Business Standard