Akzo Nobel further expands Diosynth's position in biotechnology

Akzo Nobel further expands Diosynth's position in biotechnology Modern facilities and know-how will also be used to help biotechnology starters develop innovative medicines Arnhem, the Netherlands, November 7, 2000 - "Biotechnology is an indispensable tool in the development of innovative medicines. If the Netherlands is to play a role of importance in this area, it will have to come up with initiatives, otherwise the country won't stand a chance in the biotechnology marathon in which only the strongest reach the finish line", said Mr. C.J.A. van Lede, Chairman of the Board of Akzo Nobel, on the occasion of the opening of a downstream processing production unit and start of the construction of a sophisticated biotechnological upstream processing unit of business unit Diosynth in Oss, the Netherlands. "Akzo Nobel will therefore also use its current and future facilities to help starters in the field of biotechnology. We have not only the most modern facilities to offer, but also specific know-how needed to turn an idea into a medicine as rapidly as possible, which is of crucial importance in a world crying out for innovative treatment solutions." The opening of the state-of the-art purification and isolation unit, performed today by Minister of Economic Affairs, Mrs. Jorritsma, is an important milestone for Akzo Nobel in the further expansion of its position in the biotechnology sector. This unit has already successfully passed an FDA inspection. Today also marks Diosynth's start with the construction of a cell culturing and fermentation unit, to be used for the biotech production of ingredients for new drugs. These investments amount to approximately EUR 70 million. With this, Diosynth is responding to a growing need in today's market, as well as to future requirements. Says Van Lede: "We're facing a promising future, thanks to the Human Genome Project, which was set up to map out the human DNA code. Even though we still don't know the intricacies involved in the relationship between DNA code and diseases, it is at least clear that unraveling it will lead to new medicines. And the Human Genome Project is bound to lead to novel substances to be produced by Diosynth." Diosynth is a leading producer of complex active pharmaceutical ingredients for medicines, used in areas such as contraception, infertility, diabetes, depression and thrombosis. Such products are developed using both chemical and biotechnological methods. "When an active ingredient has been discovered, a complicated phase of testing and scaling production up to factory level follows. Production can only materialize if the highest standards of quality control are observed. Diosynth has mastered this process down to the smallest detail," says Van Lede. "Not only Akzo Nobel companies profit from this. About 60 percent of Diosynth's production is done for other pharmaceutical companies." Helping hand to starters In his speech, Van Lede identified the problems that starters in particular face in the development of innovative medicines. "Whatever is possible in a laboratory cannot so easily be translated to a high tech, state-of-the-art production environment. This requires additional knowledge of and experience with drug development, combined with regulatory expertise and substantial investments. The development of promising drugs is sometimes dramatically delayed, due to a lack of resources or expertise regarding the production process. If that happens, a lot of the work has to be repeated, such as trials, tests, documentation, etc. A major risk lurks here. In the recent past, starters in particular overlooked the many pitfalls. We can offer our expertise to eliminate a number of risk factors that would otherwise lead to failure in developing innovative medicines." In her speech, Minister Jorritsma made clear that the enthusiasm for the possibilities of genetic and biotechnological applications must be turned into tangible results. She also said that she is stimulating endeavors to help the Netherlands secure a position on the global map of genomics. "The involvement of large companies is critical to the success of our ambitions." She emphasized how much she appreciated Diosynth's willingness to share its knowledge and production facilities with young life-science businesses. "This not only ensures that optimum use is made of the facilities, but also facilitates the difficult, commercially often risky steps in this area. After all, smaller companies generally can't afford such facilities, while the scaling up of the production of biotechnological products is of crucial importance to the development process," said the Minister. - - - Note to the editors: Akzo Nobel, based in the Netherlands serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 1999 (excluding Acordis) totaled some EUR 12 billion (USD 13 billion, GBP 8 billion). Currently, the Company employs 68,000 people in 75 countries. Financial results for the year 2000 will be announced on February 23, 2001. Internet:http://www.akzonobel.com http://www.diosynth.com Not intended for publication For more information, please contact: Akzo Nobel N.V., Dr. C.A.G. 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