DMV-Fonterra plans another shake-up for pharma lactose
pharmafile | January 6, 2010 | News story | Manufacturing and Production |Â Â DMV-Fonterra Excipients, FrieslandCampina Domo, lactoseÂ
DMV-Fonterra Excipients has agreed to buy the product range of FrieslandCampina Domo for 52.5 million euros in a deal that creates a dominant force in the market for pharmaceutical-grade lactose.
The joint venture between Royal FrieslandCampina of the Netherlands and Fonterra, New Zealand’s largest company, said the acquisition would conclude in March and create a company with a turnover of around 120 million euros a year.
It is estimated that DMV-Fonterra already own around 50% of the global market for pharmaceutical-grade lactose, with Friesland-Domo accounting for approximately 15%. Other major players include Meggle with about 20% of the market.
In a statement, DMV-Fonterra said the transaction would “strengthen the knowledge base, sales network, sourcing and R&D capability” of the combined company.
“After the integration, DMV-Fonterra Excipients and Domo Pharma will continue to serve their own customers in their own distinct and successful ways with their well-known product ranges,” commented Herman Ermens, chief executive of DMV-Fonterra Excipients.
This is the latest in a series of deals among lactose producers aimed at achieving the economy of scale needed to compete in the global arena, and build market share in the more-profitable pharmaceutical-grade market.
Last November, Davisco and Meggle formed a joint venture to make lactose for the US market in a deal which will see a major expansion of Davisco’s manufacturing facility in Le Sueur, Minnesota.
Meanwhile, last month Sheffield Bio-Science formed a joint venture with fellow US company Foremost Farms to expand production of pharmaceutical-grade material at Foremost’s plant in Rothschild, Wisconsin. Both companies will make an investment to add anhydrous drying capacity at the plant.
Lactose is used in approximately two-thirds of all pharmaceutical tablets, primarily as a filler in tablets, with an annual consumption of around 100,000 metric tonnes a year.
