DSM Signs Deal With Arch Pharmalabs

India's Arch Pharmalabs has signed a manufacturing deal with DSM's anti-infectives business unit that will expand DSM's product offerings. Arch will make bulk drugs, including cardiovascular agents and immunosuppressants, that DSM will start selling to global and Indian customers in early 2008.

Arch has eight manufacturing locations and a central R&D facility at which 1,200 people are employed. The company intends to invest approximately $38 million to increase production capacity by 2009. The agreement with DSM is expected to add $100 million to Arch's current annual revenues of $125 million, says Raj Iyer, president of Arch Pharmalabs USA.

In June, DSM announced that it would try to improve the profitability of the anti-infectives business through partial divestments, restructuring measures, and a partnering strategy for lower-cost production (C&EN, June 25, page 25).