DSM restructures pharma units in line with four year plan
A pharma chemicals site in South Haven, Michigan, US, is to be closed and the a biopharma site in Montreal to be mothballed as DSM Pharmaceutical Products restructures its Pharma Chemicals and Biologics businesses. The changes form part of the New Jersey-based company's new strategy 'Vision 2010', announced in the third quarter of 2005.
A pharma chemicals site in South Haven, Michigan, US, is to be closed and the a biopharma site in Montreal to be mothballed as DSM Pharmaceutical Products restructures its Pharma Chemicals and Biologics businesses. The changes form part of the New Jersey-based company's new strategy 'Vision 2010', announced in the third quarter of 2005.
The DSM Pharma Chemicals operations in South Haven will stop in the first half of 2007, affecting 142 jobs. Ongoing activities will be absorbed in DSM Pharma Chemicals' Linz (Austria) and Venlo (the Netherlands) plants.
DSM plans to focus its pharmaceutical chemical operations on higher added value products, such as advanced and registered intermediates, APIs and more specialized generic APIs, as early stage intermediates will be sourced increasingly from China and India.
DSM Biologics will focus on the development of cell line technology rather than contract manufacturing. It has strengthened its alliance with Dutch biotech firm Crucell working in this field. DSM Biologics in Groningen, the Netherlands will, in addition to its contract manufacturing service, now provide full support to licensees of Crucell's PER.C6 technology. The facilities of DSM Biologics Montreal (Canada) will be mothballed in 2006 and 85 employees made redundant.
DSM expects its operating profit for 2005 to exceed €800m, compared with the previous year's €567m.