Galenix and DSM sign manufacturing and marketing accord

12-Nov-2009 - Last updated on 12-Nov-2009 at 12:09 GMT

French drug delivery specialist Galenix has named DSM’s pharmaceutical products unit as its manufacturing and co-marketing partner as it continues to efforts build its global presence.

The deal, announced late last week, will see Dutch chemicals giant DSM act as preferred commercial-scale producer of Galenix’ range of delivery and bioavailability enhancement platforms, which include the Minextab, Mucolys and Microgix excipient technologies.

Galenix has sought to grow its offering in the lucrative US pharmaceutical market since late 2004 when it set up a business office in New York and the DSM is the latest stage in that expansion plan according to CEO Jerome Besse.

He explained that: “The [partnership] fits with our strategic intention of expanding service offerings to the North American market, and also with DSM's expansion of sales and marketing focus in Europe."

Pieter de Geus, DSM’s senior VP of R&D was equally positive about the accord, suggesting that: "[The] innovative drug delivery technologies enhance our offering in the field of pharmaceutical development services.

The firms will also work on business development and co-marketing for both Galenix’ development and clinical services offering and DSM’s contract pharmaceutical manufacturing, process development and scale-up expertise.

DSM Pharmaceuticals’ president, Hans Engels, said that: "The alliance brings out the best of both parties. Combining innovative formulations with flawless transition into commercial products creates an attractive value proposition for any drug company."

DSM’s Q3

The collaboration with DSM is a boost for DSM’s pharmaceutical business, which saw revenues decline significantly in Q3.

DSM’s Pharma business unit reported that sales for the three months ended September 30 were down 25 per cent to €152m, while revenues from base chemicals and materials also dropped 26 per cent to €328m for the period.

Despite this decline Feike Sijbesma, chairman of the DSM managing Board, was fairly positive, commenint that: “[The firm is aware] that the economic climate remains uncertain and that the path of recovery is likely to prove uneven.

“However, it seems that the first half of 2009 represented the low point for this recession and we are showing that we are well placed to capitalize as markets improve, which is also reflected in a strong sales volume development.”

Sijbesma also reiterated “[DSM’s] strategic commitment to create a life sciences and materials sciences company addressing important global trends via a focus on customers, innovation and sustainability.”