300 million euros invested in Bayer chemicals

Central Organics Pilot Plant increases expertise in synthesis in the field of pharmaceuticals

02-Oct-2000

Leverkusen – "With capital expenditures of 300 million euros, Bayer's Basic and Fine chemicals Business Group is looking to strengthen its market position in the field of pharmaceutical intermediates in Europe and the USA over the next five years. The Central organics Pilot Plant (ZeTO) in Leverkusen is playing an important role. Here alone 50 million euros are being spent within a time frame from 1998 to 2003, with more than half of this having already been allocated," announced Dr. Martin Wienkenhöver, General Manager of Bayer AG's Basic and fine chemicals Business Group at an international press conference in Leverkusen.

Challenge of c-GMP The production of pharmaceutical intermediates and actives demands a special level of plant and quality management corresponding to the standard of "current Good Manufacturing Practice" (c-GMP). "Our investment in the ZeTO is an important pre-requisite for increasing our fine chemicals turnover by 70 percent by 2004. We expect our growth in the areas of pharmaceutical chemicals, agrochemicals and electronic chemicals in the next few years to be considerably faster than that of the market," emphasized Wienkenhöver.

While the ZeTO is involved in both development and production, an exclusive production facility called Novochem, which meets the latest c-GMP requirements, is under construction in Murcia, Spain. Once it is completed in the second half of 2001 it will work exclusively for Bayer. The technology applied there is also being developed in the ZeTO.

Structural change in the fine chemicals business The worldwide market for fine chemicals, accounting for more than 50 billion euros, is dominated today by agrochemical and pharmaceutical intermediates and actives, which make up around 55 percent of the total volume. "In 1992 Bayer's main focus was still on dyestuff intermediates, which accounted for almost 60 percent of our business. Over the last eight years a dramatic change has taken place: the proportion of dyestuff chemicals has fallen to ten percent whilst turnover with agrochemicals has almost doubled. Today, it is around twice as much as our turnover with pharmaceutical intermediates," stated Wienkenhöver, explaining the structural change in Bayer's fine chemicals business. The company therefore already has an outstanding position in the international agrochemicals market. "Our most important goal in the next few years will be to further increase the pharmaceutical component because on the world market almost every second euro is earned in the pharmaceutical business," he continued. Direct precursors of the active ingredients and the actives themselves are particularly profitable and will thus be the main focus of interest. Bayer aims to strengthen its activities in this business segment, which has a high value added, both in Europe and the USA. In North America, the search is on for a suitable location to set up a new center of expertise for pharmaceutical intermediates.

One success story is that of the broad-spectrum antibiotic moxifloxacin, supplied by Bayer as Avalox® or Avelox®. Experts estimate the annual sales potential for this new active in

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Topic world Synthesis

Chemical synthesis is at the heart of modern chemistry and enables the targeted production of molecules with specific properties. By combining starting materials in defined reaction conditions, chemists can create a wide range of compounds, from simple molecules to complex active ingredients.

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Topic world Synthesis

Chemical synthesis is at the heart of modern chemistry and enables the targeted production of molecules with specific properties. By combining starting materials in defined reaction conditions, chemists can create a wide range of compounds, from simple molecules to complex active ingredients.

15+ products
4 whitepaper
15+ brochures