Solutia is selling pharmaceuticals unit to India-based Dishman

Solutia has agreed to sell its Pharmaceutical Services business, consisting of the Swiss firms CarboGen and AMCIS, to India's Dishman Pharmaceuticals & Chemicals for $74.5 million. Solutia, which is undergoing bankruptcy reorganization, acquired AMCIS and CarboGen in 2000 and has had the companies on and off the selling block over the past two years. A spokesman says the unit has been profitable in recent years under new management. Fine chemicals consultant Jan Ramakers says the Solutia business "comes with all the relationships with big pharmaceutical and biotech companies." He sees recent patent law changes in India as an accelerator in the push by Indian fine chemicals companies into Europe. But consultant Peter Pollak says he is surprised at the value of the deal. Although Indian firms may want "a foothold in the West," he says, the cost of manufacturing in Europe makes him question the price tag. Solutia Pharmaceutical Services has facilities in Aarau, Bubendorf, and Neuland, Switzerland. Solutia says all current employees will join Dishman. The sale is the third in recent months of a Western European fine chemicals business to an Indian firm. Last year Avecia announced its exit from the market with the sale of its fine chemicals operation to Nicholas Piramal. Earlier this year, Rhodia sold its fine chemicals business to Shasun Chemicals & Drugs.