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In mid-February 2006, the International Custom Chemicals Exhibition in Orlando, Florida, showcased a growing trend: major players in Europe and North America are increasingly leveraging biotechnology to drive growth in custom synthesis. This shift is not only about innovation but also about maintaining a competitive edge against rising Asian rivals. The industry is evolving steadily, focusing on high-value, specialized chemical production rather than direct competition.
Organized by the American Synthetic Organic Chemical Manufacturers Association, the event highlighted the expanding role of biocatalysis. DSM Medical Chemicals, for example, is collaborating with IEP, a German biocatalysis firm, to develop new biocatalytic pathways that can replace traditional chemical methods. IEP will first identify suitable biocatalysts, followed by scaling up the selected processes at DSM. These innovations aim to produce pharmaceutical intermediates and active ingredients more efficiently and sustainably.
PCAS, a French fine chemicals supplier, has launched PCAS Biochemicals, a joint venture with a biotech company. This partnership combines intellectual property and introduces biocatalytic routes for synthesizing key pharmaceutical components.
BASF and Degussa are also investing heavily in biocatalysis. BASF has already integrated biocatalytic processes into its production of chiral compounds and plans to offer services like biocatalyst screening, optimization, and commercial-scale production. It recently partnered with Diversa to advance enzyme research. Meanwhile, Degussa established a biocatalytic service center, offering bacterial strain optimization, process design, and pilot production. To cut costs, it also formed a long-term collaboration with Hikal, an Indian chemical company, combining Degussa’s patented technology with Hikal’s cost-effective production capabilities.
Reaxa, a new joint venture between Avecia and the University of Cambridge, focuses on catalyst packaging technology. Its CEO announced a $6 million investment to create Reaxa Biotech, which will specialize in polymer drug synthesis, solid-phase chemistry, and controlled release technologies.
The exhibition also featured major developments from Indian companies. Nicholas Piramal acquired Avizia Pharmaceuticals, with Avizia aiming to become one of the top three global custom chemical service providers. Additionally, Shasun Chemicals & Drugs of India agreed to acquire Rhodia’s custom chemical division, signaling a significant shift in the global market.
These trends reflect a broader movement toward biotechnology-driven solutions, emphasizing efficiency, sustainability, and strategic partnerships in the custom chemicals sector.
October 06, 2025