Degussa unveils new pharma strategy

Degussa, a pharmaceutical company, planning to adopt new strategies for manufacturing and supplying custom active pharmaceutical ingredients. The strategy is designed to create a closer, more efficient relationship between the company and its main customers. Closer relationship could involve integrating the company's services such as R &D and quality control with key customers. The company is being forced to undertake these steps because of tough market conditions resulting from the relatively low number of new chemical entities reaching the pharmacy and an increase in low-cost competition from Asian producers. Key customers have responded positively to the proposed strategy and say it holds substantial validity. The company says that in response to low-cost competition from Asia it has agreed on a collaboration with fine chemicals custom manufacturer Hikal (Mumbai), under which Hikal will provide the company with access to low-cost production facilities.