Swiss pharma and chemical supplier Lonza will carve out its Specialty Ingredients (LSI) business as part of its effort to reorganize the slumping division.
The move will result in the elimination of about 130 jobs, the company said.
LSI posted lackluster first-quarter results that were partly attributed to a March explosion at a Chinese chemical plant that killed 62 people.
The action, which the company said is already underway, is expected to be completed by mid-2020. The segment will remain fully owned by Lonza.
In what was dubbed a “qualitative look” at the company’s first-quarter numbers, Lonza CEO Marc Funk said in April the disruption from the explosion contributed to “headwinds” for the company’s specialty ingredient business.
“Our decision will allow the segment to focus on its strengths and drive future growth in a dynamic and competitive environment,” Funk said in a statement about the carve-out Monday. “More widely, it reflects our commitment to enabling the segment to become the leading global player in microbial control.”
The deadly explosion March 21 in Yancheng, China, underscored challenges that country is facing with its huge chemical and ingredient supply industry in terms of both safety and pollution. Plus, it outlined global dependence on chemical ingredients for the pharma industry that come from China.
By Joseph Keenan
Source: Fierce Pharma
Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.
Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.
On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.
