Contact R&D Is Key to Rhodia-ChiRex Deal.(research and development)(Brief Article)(Statistical Data Included)

Chemical Market Reporter, July, 2000 by BOSWELL, CLAY

Consolidations will continue in the $13 billion outsourcing market. RHODIA'S ACQUISITION of ChiRex for $545 million places a high value on the company's business model, which holds that high-quality process development is a powerful magnet for pharmaceutical outsourcing. It also reflects pressures that will continue to force small and mid-sized custom manufacturers to consolidate, says Michael A.

Griffith, chairman and CEO of ChiRex. "It became clear to us that the company was too small for the marketplace, which is becoming mature very quickly in its ways of working, its expectations for capital deployment and its global nature," Mr. Griffith says. "It's only natural and inevitable that development-based companies will become part of bigger...

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