Degussa to invest USD 18 million in Proligo LLC

Degussa AG has announced that its subsidiary Degussa Corp, NJ, will acquire the outstanding 49 percent interest in Proligo LLC from Gilead Sciences, Inc. to gain 100 percent ownership of Proligo. At the same time Degussa announced that it has provided USD 18 million to Proligo to fund the strategic expansion of Proligo’s nucleic acid supply capacity to the Genomics and Genetic Medicines market place.
Degussa will pay Gilead Sciences USD 14.3 million for the purchase of its 49 percent ownership interest under a call option negotiated at the formation of Proligo between NeXstar Pharmaceuticals and SKW Trostberg AG in 1998, and carried forward to Gilead Sciences through its acquisition of NeXstar Pharmaceuticals in 1999. SKW Trostberg AG was merged into Degussa AG in February 2001. The deal is expected to close on August 31, 2001.
Proligo is a leading supplier of value added Nucleic Acids to the Genomics and Genetic Medicines industry. Proligo successfully transforms innovative intellectual property to high quality products that fuel the Genomic Revolution. With manufacturing facilities in both North America and Europe Proligo is ideally positioned to supply the global nucleic acids market. The funding is ear-marked to increase the production capacity for Monomers for DNA synthesis at
Proligo’s Hamburg/Germany plant, as well as to increase the capacity for Locked Nucleic Acid (LNA) oligonucleotide probe manufacture and to build capacity for fully validated active pharmaceutical ingredient manufacture for Genetic Medicines at its Boulder, Colorado
Proligo is part of Degussa’s Creavis unit, which nurtures new businesses in existing and future markets not currently covered by Degussa’s business units. “With Proligo, we have gained an excellent foothold in the rapidly growing Biotechnology supply market. The future expansion of Proligo fits extremely well to our strategy of establishing ourselves in innovative new markets for specialty chemicals”, said Utz-Hellmuth Felcht, Management Board Chairman of Degussa AG. As a fully-owned company within the Degussa Group, Proligo will be in a position to particularly profit from Degussa’s experience in the area of process technology and in the production of
fine chemicals.

Previous articleNew member of KTS board
Next articleExxonMobil begins work on West Africa field
Stainless Steel World Publisher
Stainless Steel World is part of The KCI Media Group, a group of companies focused on building and sustaining global communities in the flow control industries. We publish news on a daily basis and connect business-to-business professionals through our online communities, publications, conferences and exhibitions.