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From mid-February 2006, the International Custom Chemicals Exhibition in Orlando, Florida, highlighted a growing trend: major chemical companies in Europe and North America are increasingly leveraging biotechnology to enhance their custom synthesis capabilities. This strategic move aims to drive innovation and maintain a competitive edge in a rapidly evolving market, especially as Asian players continue to rise.
Organized by the American Synthetic Organic Chemical Manufacturers Association, the event showcased numerous advancements in biocatalysis. DSM Medical Chemicals, for instance, is collaborating with IEP, a German biocatalysis firm, to develop eco-friendly and efficient biocatalytic routes that can replace traditional chemical processes. The next phase involves IEP screening suitable biocatalysts, followed by DSM conducting large-scale trials. These innovations will eventually be used to produce pharmaceutical intermediates and active ingredients.
In France, PCAS, a leading fine chemicals supplier, has formed a joint venture called PCAS Biochemicals with a biotech partner. The collaboration focuses on integrating intellectual property and introducing biocatalytic methods for drug production.
BASF and Degussa are also investing heavily in biocatalysis. BASF has already applied biocatalytic processes to produce chiral compounds and plans to expand into services like catalyst screening, process optimization, and commercial production. It recently partnered with Diversa to advance enzyme research. Meanwhile, Degussa launched a biocatalysis service center, offering customers support in strain optimization, process design, and pilot production. To reduce costs, it also established a long-term partnership with Hikal, an Indian company, combining Degussa’s technology with Hikal’s cost-effective production capabilities.
Reaxa, a relatively new player, was formed by Avecia and the University of Cambridge. Now, Reaxa Biotech is set to invest $6 million in polymer-based drug synthesis, solid-phase technology, and controlled release systems.
The exhibition also featured notable developments from Indian firms. Nicholas Piramal acquired Avizia Pharmaceuticals, which aims to become one of the top three global custom service providers. Additionally, Shasun Chemicals & Drugs announced its acquisition of Rhodia’s custom chemical division, signaling a major shift in the industry landscape.
October 06, 2025