Solvay deal suggests Novasep's strategy has paid off

By Susan Gotensparre

- Last updated on GMT

Related tags Novasep Active ingredient Groupe novasep

Solvay has contracted Novasep to provide synthesis of two active
pharmaceutical ingredients, following Novasep's decision to combine
synthesis and processing expertise.

The deal is an endorsement of Novasep's strategy of combining API synthesis and processing capabilities, with Belgian pharmaceutical firm Solvay applying a strategic shift in outsourcing its manufacturing activities, in a bid to achieve "high quality, competitively-priced alternatives".

The merger between Groupe Novasep and Rockwood Dynamic Synthesis in January 2005 formed a new standalone company, which has since been spun out. Novasep Synthesis offers pure and cost-effective Active Pharmaceutical Ingredients (API) to its customers using their exclusive synthesis "know-how" with its purification technology - preparative chromatography. Novasep also offers specialised technologies, such as chiral technologies.

The manufacturing alliance has taken the form of a five-year agreement, with a possibility of an extension. As part of the agreement, Novasep will implement large-scale production of Pinaverium bromide and Betahistine at their French Mourenx facility.

Dicetel (pinaverium bromide) is one of Solvay's drugs for irritable bowel syndrome and contributes to their leading position in the market of gastrointestinal spasmolytics, while Serc (Betahistine dihydrochloride, Betaserc, Vasomotal) is the world market leader in the treatment of Ménière's disease and vestibular vertigo.

Solvay's generated sales for 2005 was €8.6 billion, of which two-thirds came from its pharmaceuticals and specialties activities. The Solvay Group has 160 000 clients and employ 30 000 people.

Groupe Novasep operates through two divisions: Novasep Process and Novasep Synthesis. The focal point is on synthesis and process of intermediates, advanced intermediates and APIs.

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