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DSM's CMO biz wins second contract in two months

17-Jul-2012

DSM Pharmaceutical Products (DPP) has won its second biologics manufacturing contract in two months signing up Brazil’s Recepta Biopharma as a new customer.

The deal will see DSM conduct process development and cGMP manufacture one of Recepta’s lead antibody drug candidates for early clinical trials at its facilities based in Groningen, The Netherlands.

The contract is the second won by DPP’s DSM Biologics unit this summer after the antibody manufacturing deal it announced late last month and further supports DSM’s argument that its custom manufacturing business is seeing some recovered from the slump it saw in 2001.

In May the firm reported that the revenue generated by its CMO business had increased in Q1 relative to 2011, citing an improved pipeline of contracts and intensive marketing and sales work.

Whether the Recepta or previous manufacturing contracts like one signed with Agenix earlier this year will change DSM’s previously announced plans to sell off its CMO business is unclear, but such agreement do lend further support to the decision invest in biologics .

South America

The Recepta agreement is also the first won by DSM Biologics in South America, which is in keeping with the firm’s wider strategy according to DPP CEO Alexander Wessels.    

Working with RECEPTA in Brazil marks further advancement of DSM's stated strategy to grow its presence in high growth economies such as Brazil and South America.”

DSM has sought to reduce its reliance on Big Pharma customers for manufacturing contracts in recent years. In March this year company CEO Feike Sijbesma said that the market is prone to “lumpiness and volatility”and that reducing client concentration is one way to combat this problem.

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