WR Grace opens pharma-focused QC lab and predicts second half intemediates growth

By Gareth Macdonald

- Last updated on GMT

Site of WR GRace's new QC lab at facility in Albany, Oregon (Google maps)
Site of WR GRace's new QC lab at facility in Albany, Oregon (Google maps)

Related tags Chemistry

W.R. Grace has opened a pharma quality control laboratory at its manufacturing facility in Albany, Oregon and predicted higher drug intermediates sales in the second half of the year.

Maryland-based Grace announced the expansion last week, explaining that the laboratory can conduct batch release analysis for pharmaceutical starting materials and intermediates.

Fine chemicals global business director, Brett Reynolds, said the firm “continues to invest and expand our capabilities in custom manufacturing of regulatory materials​,” adding that “this higher level GMP manufacturing expands our portfolio of products and services to the pharmaceutical and related industries​.”

Grace gained the Albany facility when it acquired Synthetech in 2010​ in a deal that added chiral chemistry and peptide intermediate synthesis capability to its offering.

Second quarter

The laboratory opening comes just days after Grace revealed that lower sales to pharmaceutical customers had negatively impacted it in the second quarter. Revenue for the three months ended June 30 was $390.5m (€352.1m), down 4.1% year-on-year.

Grace’s materials technology business – which supplies the drug, consumer and coatings sectors – saw revenue fall 4.7% to $112.1m due to “the exit of certain product lines earlier in the year​.”

Despite this, the division’s operating income grew 17.6% to $28m, thanks to margin improvements and lower production costs.

COO Hudson La Force told analysts during the firm’s earning call last week that: “Our materials technology business also performed well in Q2. We saw strong margins and a solid recovery in Q2 volumes following a weak Q1.

Demand in North America and Europe was in line with our expectations and demand in Asia strengthened considerably, confirming our view that the weak Asia demand in Q1 was an inventory correction​. “

He also predicted that: “In the second half we expect stable silica sales, and improved sales in pharmaceutical and nutraceutical intermediates​.”

Outlook

Grace also saw a quarterly decline in its catalysts business, which supplies products and technologies used in energy and refining, polyolefins and plastics, as well as petrochemical, and other chemical manufacturing applications.  

The division’s revenue fell 3.8% to $278.4m. Operating income grew 1% to $87.5m.

Grace get its full year revenue forecast to between $400m to $405m, down from the $500m to $505m range it forecast earlier in the year.

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