BASF shake-up wont impact pharma business; China expansion

By Gareth Macdonald

- Last updated on GMT

Related tags: Pharmacology

BASF shake-up wont impact pharma
The organisational changes BASF announced yesterday will not impact drug ingredients or excipients but intermediates will be rejigged.

The firm announced plans to dissolve its plastics segment and combine its polymers and polyurethanes divisions into a performance materials division under its functional materials and solutions segment yesterday, citing the need to create products tailored to key industries. The changes will come into effect on January 1.

Spokesman Andres-Christian Orthofer told that the reorganisation would not impact either BASF’s active pharmaceutical ingredients API) business or its pharmaceutical excipients units, which will continue to be part of the firm’s performance products segment.

BASF’s custom synthesis business – which provides API development, manufacturing and analytical services to the pharmaceutical industry and other sectors – will also be unaffected by the changes according to Orthofer.

The reorganisation is going to affect drug intermediates business according to spokesman Klaus-Peter Rieser.

He said the firm “will bundle pharma intermediates by integrating the inorganic life science chemicals of BASF's Inorganics Division into its current pharma intermediates portfolio, thus providing a broader offering to our pharma customers while eliminating internal interfaces.

The future portfolio will consist of organic and inorganic intermediates for the pharmaceutical industry, complemented by solvents. We expect growth synergies and improvements in our internal processes when approaching pharma accounts​.”

China chem research expansion

In other news, BASF inaugurated its first R&D centre in China. The ‘innovation campus’ at the firm’s local headquarters in Pudong, Shanghai was set up at a cost of €55m ($m) and will eventually employ a workforce of 2,500 people.

Initially, research will focus on sustainable materials, such as ‘biobased’ polymers for home and personal care applications, as well as waterproofing technologies, energy efficient lighting and shoe components.

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