Minakem adds EU API capacity to compete with Asia

By Gareth Macdonald

- Last updated on GMT

Fine chemicals firm Minakem believes that manufacturing capacity added by its newly acquired API plant in Dunkirk, France will reduce costs and help it compete on a global scale.

The site, which was previously owned by UK drug major AstraZeneca, houses 450 m3 of active pharmaceutical ingredient (API) batch reactor capacity, has a history of corticosteroid production and separate micronization and injectables units.

Company spokesman Sebastian Poncet told in-PharmaTechnologist that the extra reactor capacity was key to the acquisition as it will allow Minakem to reduce the amount it charges customers and keep pace with the generally lower cost Asian manufacturing sector.

Poncet explained that: “China and India are now part of the game and they have put pressure on margins in Europe for several years. The European players have to adapt their workforce to be more competitive, without compromising on quality​.”

He went on to say that, while Asia has dominated the market in the last few years, recent high-profile problems with APIs sourced in India and China have “reminded the pharma industry that relying 100 per cent on Asia for their supply chain is a huge risk.”

Poncet added that, increasingly, “[the pharma industry] try to [find a balance] with dual sourcing based on a geographical approach​,” which, if correct, will surely be welcome news for European API makers.

Chemical synthesis brought under Minakem banner

Dunkirk will serve as the base for all small molecule synthesis operations under the Minakem brand name, with the manufacture of budesonide, omeprazole and esomeprazole for AstraZeneca being one of the first contracts the firm has signed.

The group’ Minasolve bio-ingredients, PennAkem renewable chemicals and Furan chemistry divisions will continue to operate as separate business units.

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