German chemicals giant BASF has contracted Connell Brothers as its drug excipients distributor in Australia and New Zealand.
Connell Brothers - which is part of US firm Wilbur-Ellis - will assist customers formulation development activities and will also be responsible for the distribution of BASF human nutritional ingredients in the region.
This decision to have one firm ship both excipients and food ingredients is based on the dynamics of the manufacturing industry in the Asia Pacific region according to BASF Asia Pacific spokesman Cecil Tung, who told in-Pharmatechnologist.com more about the deal.
“The pharma excipients market in New Zealand and Australia differs to other markets due to the relatively high percentage of dietary supplements manufactured here as compared to OTC or prescription medicine.
“[Therefore] having Connell Brothers offering both our excipients and vitamins to these dietary supplement manufacturers makes a lot of sense.”
Tong declined to comment when asked about cost of distribution in New Zealand and Australia – which is usually higher than elsewhere as a result of the distance from production hubs. However, he did explain that because manufacturing activities are focused in key areas, distribution within each country is relatively straightforward.
“While Australia and New Zealand are geographically remote, the vast majority of demand is centred on the Sydney, Melbourne and Auckland areas, which simplifies the supply chain.”
He also said that Connell’s experience shipping chemicals and capacity in the Asia Pacific region had been key to winning it the contract.
“Connell Brothers was selected for their excellent track record in the ANZ region and in greater Asia Pacific.
He added that: “They are investing in an applications centre in Sydney which will provide support to customers who will be serviced by Connell on BASF's behalf as a result of this agreement.”