Further biotech acquisition for Akzo Nobel

Akzo Nobel's Diosynth business unit, which produces activepharmaceutical ingredients, is to acquire the US firm Covance Biotechnology Services for $190 million. CBS is engaged in the manufacture of innovative biopharmaceutical substances, with an estimated sales volume of some $110 million in 2001. Diosynth will gain access to a large professional development group at CBS as well as its commercial network in the US biotechnology market, thus creating one of the world's leading companies in biopharmaceutical production.

Johan Evers, general manager of Diosynth, said his company had just opened a large downstream processing facility and its new cell culture and fermentation plant would be on stream by the end of 2002. Combined with the increasing demand for biotechnology-based medicines, the acquisition would enhance Diosynth's position as a supplier of APIs. Diosynth employs some 2,300 people and reported sales of $350 million in 2000, while CBS posted 2000 sales of $800 million.