C&EN: TODAY'S HEADLINES - THE CPHI SCOOP FROM PARIS

RICK MULLIN

At the convention on Pharmaceutical Ingredients (CPhI) in Paris last week, firms involved in directed evolution, oligonucleotides, and other high-end drug technologies announced new commercial offerings, financing, and contracts. Two companies revealed restructurings aimed at reinforcing their commitment to drug industry customers.

Dow Chemical, for one, is set to become a player in the emerging oligonucleotides field. Nick Hyde, the new director of the company's pharmaceutical services unit, says Dow is building a commercial-scale oligonucleotide facility with initial capacity of approximately 500 kg.

Degussa, meanwhile, said that its newly launched business in oligonucleotides for antisense pharmaceuticals has been shifted from its Proligo division to its fine chemicals operation. Last year, Degussa invested about $10 million to move the oligonucleotide operation from Proligo, in Boulder, Colo., to Edmonton, Alberta. Degussa now has contracts for the plant, which has a capacity in the "tens of kilograms," says Peter Nagler, fine chemicals president. In addition, several oligonucleotide drugs are in the pipeline.

Only one nucleotide drug has been approved to date; it's made by Isis Pharmaceuticals. Avecia, considered the leader in bulk oligonucleotides, is supplying active ingredients to biopharmaceutical firm Genta for a drug in Phase III clinical trials that observers say is most likely the next to be approved.

Codexis, a subsidiary of Maxygen that offers directed evolution technology, says it has received $25 million in private financing from investors, including CMEA Ventures, Chevron Texaco Venture Equities, Pequot Ventures, and Maxygen. Codexis CEO Alan Shaw notes that the financing comes on the heels of recent royalty-bearing agreements with DSM and Pfizer (C&EN, Sept. 16, page 10).

Diversa, another directed evolution player, has signed a licensing agreement under which Dow's pharmaceutical services division will use its enzyme technology to develop a key intermediate for Pfizer's Lipitor cholesterol-lowering drug, according to William H. Baum, Diversa's executive vice president.

Restructuring among diversified companies with pharmaceutical chemical operations continues, with Clariant and Rhodia announcing new business units. Clariant Pharmaceuticals, headed by David Maddox, has emerged following a separation of pharma and nonpharma contract services. The company says the new organization is a refinement of the structure launched after Clariant's 2000 purchase of BTP.

Rhodia will launch a similar pharmaceutical unit combining its drug development, custom manufacturing, and bulk analgesic operations, according to Jean-Pierre Clamadieu, president of Rhodia's fine organics division. Management of the new unit, to be headquartered in the U.S., will be determined by December, Clamadieu says.

Both Clariant and Rhodia say the new units are intended to provide customers with one-stop shopping for all their pharmaceutical products and services and to establish their companies as brand names in pharmaceuticals.