Pharma problems hurt results at European firms.(Custom Manufacturing)

Chemical Week, August, 2004 by Wood, Andrew

Problems in the custom manufacturing sector have hurt results at several major European firms, including Akzo Nobel, DSM, Lonza, and Rhodia. Most reported lower sales and profits for their pharma businesses in the latest quarter. "The agony in custom manufacturing continues, which does not come as a surprise, as the underlying supply-demand imbalance persists," says Peter Pollak, an independent analyst based at Reinach, Switzerland. Companies need to cut costs, and rationalize plants, Pollak says.

Operating profit in DSM's Life Science Products' division sank 52%, to 22 million [euro] ($26.5 million) in the second quarter, on sales down 6%, to 463 million [euro]. "Unfortunately, the result of the Life Science Products cluster remains depressed," says DSM...

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