Degussa sells Raylo Chemicals and establishes a long-term supply partnership with Gilead Sciences

08-Jun-2006

Degussa AG announced that the company has signed a definitive agreement under which GILEAD Sciences, Inc. plans to acquire Degussa's subsidiary Raylo Chemicals Inc. with its assets at the Clover Bar site. Under the terms of the agreements and subject to certain closing conditions, Gilead will pay approximately 115 million euros to Degussa. In addition, Degussa has entered into long-term agreements with Gilead for the supply of raw materials and the manufacture of certain active pharmaceutical ingredients (API) for Gilead products. The companies expect the transaction to close in the fourth quarter of 2006.

Located in Edmonton, Canada, Raylo Chemicals is currently part of Degussa's Exclusive Synthesis & Catalysts Business Unit with approximately 200 employees at two sites, Clover Bar and Argyll Road. Raylo's operations encompass custom manufacturing of API and advanced intermediates for the pharmaceutical and biopharmaceutical industries. Gilead has worked with Raylo over the course of the last 14 years, during which time Raylo has provided both development expertise and commercial product on a large scale for Gilead.

Gilead intends to utilize this site primarily for manufacturing development of investigational products, supplying API for clinical research programs and contributing to new product launch supplies. Degussa will ensure the business and supply relationships with Raylo's existing customers (other than Gilead). The Raylo name and the Argyll Road site will remain assets of Degussa.

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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