DSM restructures anti-infectives unit
Amsterdam – The Dutch ingredients firm DSM has announced plans to carve out its anti-infectives unit and initiate a partnering strategy with firms in low-cost areas such as India or China. DSM’s anti-infectives business supplies the pharmaceutical industry with active pharmaceutical ingredients (APIs), for example amoxicillin, ampicillin, cephalexin or penicillin. However, the carve-out decision is seen by some as a precursor to a potential sale of the unit, a possibility that was under consideration when the company announced it was “reviewing all strategic options” for the group back at the end of 2006. In a subsequent drive to reduce costs and raise profitability, DSM shut down two manufacturing sites in Delft and Geleen in the Netherlands and ended a joint venture with GlaxoSmithKline. DSM’s anti-infectives unit makes up around 5% of the company’s sales but has struggled over the years due to high raw material costs and unfavourable exchange rates.