Chexpress - May 22, 2012

North America

IPO

OncoMed Pharmaceuticals Inc. is seeking $115 million in an initial public stock offering. The Redwood City, California-based cancer drug developer plans to use the proceeds of the IPO to advance its lead drug, demcizumab, or OMP-21M18, and two other drugs into Phase II clinical trials and for programs with partners GalxoSmithKline and Bayer AG. OncoMed is developming monoclonal antibody drugs that target cancer stem cells, a relatively small subpopulation of stem cells in a tumor that drive tumors to grow and spread. The company believes that by stopping these stem cells from renewing themselves, its drugs can stop cancer from recurring.

Pledge

The PPG Industries Foundation is donating $75,000 toward a science program for students in the Milwaukee, Wisconsin area. The Carnegie Science Center in Pittsburgh, Pennsylvania is collaborating with the Harley-Davidson Museum on a version of “The Great Color Caper” science show for students in the region surrounding PPG’s Oak Creek, Wisconsin coatings plant. The comic-book-styled program uses interactive multimedia to teach students about light, energy, reflection and color.

Divestiture

Imperial Oil Limited is putting its refinery in Dartmouth, Nova Scotia up for sale. The refinery is up for auction. Approximately 200 employees and 200 contractors are employed at the refinery and related terminals. Company representatives said they had no choice but to look for a buyer because Europe is buying less gasoline than it did in the 1970s and the reinfery has been losting tens of millions of dollars over the past few years despite a recent switch to making diesel. If there is no buyer, the refinery could be converted into a terminal that could supply fuel to the airport, harbor and military, but that would only require 25 workers.

 

World

Sale

Cytec Industries Inc. has agreed to sell its pressure-sensitive adhesives product line to Henkel AG for about $105 million in cash as the company shifts its business focus. The deal comes as the specialty chemicals and materials company has sought to reduce its exposure to more cyclical markets. Cytec sold its building block chemicals business last year, and it recently agreed to acquire Umeco PLC to expand its presence in aerospace and industrial applications. It is also considering spinning off its remaining coating resins business and expects to announce a decision this quarter. The sale to Henkel includes a variety of adhesives used in labels, tapes, graphics and medical applications.

$50 Million Commitment

Monsanto Co. is committing $50 million over the next 10 years to support sustained Africa agricultural development and growth. The company is supporting the New Vision for Agriculture Initiative, the Grow Africa Partnership and the G8’s New Alliance for Food Security and Nutrition.

Expansion

Syngenta aims to boost its sales in Africa to $1 billion within the next decade. The company plans to invest $500 million in that period because it believes that the continent could become a major food exporter and because of the huge local demand. Syngenta wants to work with local partners and experts to boost both small-scale and large-scale agriculture.

Gas Chemical Complex

Uzbekneftegaz National Holding Company and Indorama Group plan to establish a joint venture in the second half of 2012 to build a gas chemical complex in Kashkadarya, Uzbekistan. A working group that develops the technology and strategy of the project’s implementation has been formed. The proposed $2.5 billion project provides for the construction of a gas chemical complex with a capacity of 500,000 tons of polyethylene/year. The construction period is estimated to be four years.

Expansion Management

Fluor Corporation was selected by Reliance Industries Limited to perform project management services for its projects to be executed at its Jamnagar, India refining and petrochemical complex. Flour will also perform engineering and procurement services for the pet coke gasification project. The scope of the project management services to be provided by Flour includes several world-scale units including petroleum coke gasification units, refinery off-gas cracker and downstream petrochemical plants, a captive power plant, and associated utilities and offsites. The completed gasification project will gasify petroleum coke to produce fuel and hydrogen for the expanded refinery and petrochemical complexes and captive power plant as well as feedstock for future chemicals production.