czech chemical and pharmaceutical industry

6/2008

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CZECH CHEMICAL AND PHARMACEUTICAL INDUSTRY

Supplement of:Czech Business and Trade 11-12/2008

C Z E C H C H E M I C A L A N D P H A R M A C E U T I C A L I N D U S T RY

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MK ČR E 6379

This magazine is published as a supplement to the economic bi-monthly issued in English (Czech Business and Trade), German (Wirtschaft und Handel inder Tschechischen Republik), French (Industrie et commerce tchèques), Spanish (Empresas y negocios en la República Checa), and Russian (óe¯cÍaflÚop„o‚Îfl Ë Ôe‰ÔËÌËÏaÚeÎ¸cÚ‚o).

Managing Editor: Petr KamenickýEditor: Ondřej ŠtrbaGraphic Design: Helena Dvořáková

Address: PP Agency s.r.o., Myslíkova 25, 110 00 Praha 1, Czech RepublicPhone: +420 221 406 623, 221 406 626, Fax: +420 224 930 016E-mail: [email protected], www.mpo.cz/cbt

Deadline: 23/09/2008

Attitudes expressed by the authors of articles in this magazine are not necessarily consistent with the viewpoint of the Publisher.

PP Agency Company with the ISO 9001 certified quality management system for publishing services

CONTENTS:

4 Editorial

ANALYSIS4 Czech Chemical Industry Now and its Future Prospects7 Pharmaceutical Industry in the Czech Republic

INVESTMENT10 Chemical and Pharmaceutical Industry, Traditional Sector with Bright Prospects

LEGISLATION12 New Chemical Legislation – Implementation of REACH Regulation and Preparation of GHS

Regulation

EDUCATION14 Institute of Chemical Technology, Prague Educates Top-ranking Experts

WE ARE INTRODUCING16 MEGA a.s. – Leader in Electro-membrane Processes

ENTERPRISE18 WALMARK is Planning Expansion to West European Markets19 Allergens for Laboratories Manufactured in the Czech Republic

CZECH TOP20 PLIVA-Lachema, Leading Czech Manufacturer of Generic Drugs21 Milestone in the Manufacture of Polyolefins in UNIPETROL RPA, s.r.o.22 Zentiva – Five Years of Successful Development

RESEARCH & DEVELOPMENT24 Czech Membranes Are Conquering the World26 Centre of Biological Technologies – Czech Technology Incubator

SURVEY28 Poll of Successful Companies Operating in the Chemical and Pharmaceutical Industry Sector

INFORMATION30 Exhibitions and Fairs in the Chemical and Pharmaceutical Industry Sector in the Czech Republic30 Important Contacts

PRESENTATION OF COMPANIES:

2 CHEMOTEX Děčín a.s.11 SVUS Pharma a.s.15 Ing. Petr Švec – PENTA17 M+H, Míča a Harašta s.r.o.23 Zentiva, a.s.25 BRAINWAY Inc. s.r.o.31 AVEFLOR, a.s.31 Hexion Specialty Chemicals, a.s.32 Fosfa akciová společnost

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Milestone in the Manufacture of Polyolefinsin UNIPETROL RPA, s.r.o.

Centre of Biological Technologies – CzechTechnology Incubator

Chemical and Pharmaceutical Industry,Traditional Sector with Bright Prospects

A N A LY S I S

Czech ChemicalIndustry Now and its Future Prospects

Erik Geuss, Jiří Chroustovský, Eva Veselá, Ministry of Industryand Trade, e-mail: [email protected], [email protected],

[email protected]

2008Dear Readers,

Life without the chemical and pharmaceutical industry

can hardly be imagined. Dramatic progress in the

chemical industry is improving the living standard, and

discoveries in pharmacy are prolonging human life. The

chemical and pharmaceutical industry has a long tradition

in the Czech Republic. Universities of high quality are

educating proficient chemists and pharmacists, and

foreign companies are opening new plants and

laboratories in this country.

The Czech Zentiva company ranks among the most

important producers of medicines in Central Europe, and

the Unipetrol group is an important player on the local

petrochemical market. Technology incubators are being

established in the Czech Republic. You will have an

opportunity to become acquainted in detail with one of

them, and with the above mentioned companies in this

issue.

Last but not least, mention is deserved by the long series

of achievements which include the invention of the

contact lens. An interview will introduce a successful

Czech chemist, Miroslav Bleha, the winner of an

important scientific award for the development of a new

membrane technology.

This issue gives the reader an overall view of the

chemical and pharmaceutical industry and indicates its

possible development in the future.

Ondřej Štrba

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The chemical industry, including the pharmaceutical branch,ranks among the main manufacturing sectors, as its semi-finished and final products serve everywhere. In 2007, itsorganisations with 20 and more employees accounted for 5%of the revenues of the Czech manufacturing industry, 5.5% ofthe book value added, and 3.4% of the number of employees.The share in GDP is estimated at 2 to 2.1%, which isapproximately at the level of the EU-27.

The sector includes seven product branches and their share inthe 2007 revenues (in constant prices, in per cent) is shown inthe graph on p.5.

The graph clearly shows that basic chemicals (NACE 24.1)have the largest share in the product structure of the sector –more than three fifths, pharmaceuticals (NACE 24.4) accountfor 18%, and detergents and cosmetics for 10.3%. On thecontrary, a low share is shown in other chemical products(NACE 24.6) , which inc lude spec ia l chemica ls andagrochemicals (NACE 24.2, industrial fertilisers are included inNACE 24.1) and man-made fibres (NACE 24.7). The structure Inthe EU-27 is different. In 2006, basic chemicals (NACE 24.1)accounted only for 43%, and the manufacture ofpharmaceuticals, which has the highest share in value added inrelation to revenues, accounted for 28%.

Economic Results in 2007The 2007 results (revenues rose by 6.2%) were better than the2006 results (revenues rose by 3.8%). The situation wasparticularly favourable in the first half of the year, whereas theresults in the second half were strongly influenced by the longoutage in UNIPETROL RPA, s.r.o. This worsened severalindustrial indicators in this petrochemical holding, which hada decisive share in the revenues of the sector. The results ofother large companies ended in black numbers, which appliedespecially to SPOLCHEMIE, a.s., in which the new manufactureof synthetic resins was in full swing. The book value added inthe monitored period was lower than the increase in revenues(3.8%) and the number of employees increased only slightly –approximately by 1.3%. At the end of 2007, a total of 221enterprises with 20 and more employees were operating in theNACE 24 sector, and the large enterprises with 250 and moreemployees accounted for more than 75% of the sectorrevenues. The largest company of the sector is UNIPETROL, a.s.In terms of revenues, it ranked among the first five of the TOP100 enterprises in 2007. The main economic indicators of thechemical industry sector from 2005 to 2007 are shown in thetable on p. 6.

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(imports to CR EUR 2.3 billion, exportsfrom CR almost EUR 1 billion), followedby the neighbouring countr ies –Slovakia (imports EUR 403 million,exports EUR 627 million) and Poland(imports EUR 411 million, exports EUR522 million). The largest trade partnerof the Czech Republic is the EU-27,which accounted for more than 79% ofCzech imports and almost 81% exportsof chemical products in 2007. Incontrast to the EU-27 (surplus of morethan EUR 40 billion in 2006), the CzechRepublic has a large deficit in foreigntrade, but taken by NACE classification,i.e. only imports for the chemicalindustry, the CR would have a surplus inthis sector.

Investment in the SectorTangible investment into the Czechchemica l industry, inc luding thepharmaceutical branch, has beenranging around an annual average ofEUR 325–350 million in the last years,but exceeded EUR 400 million in 2007.The largest investment into thedevelopment of chemical productionhas been made by the petrochemicalhold ing UNIPETROL, a .s . andSPOLCHEMIE, a.s., both based in theÚstí Region. In the framework of itsplanned outage, UNIPETROL, a.s.increased bulk manufacture of someplastics in 2007, and in 2008 is to addto its product portfolio dicyclopentadienand the non-hydrogen fraction ofaromatic hydrocarbons, both on thebasis of its own technologies, whichwere developed in co-operation withthe Institute of Chemical Technology,Prague, and the Inorganic ChemistryResearch Institute in Ústí nad Labem,and to expand benzene production. In

Source: Ministry of Industry and Trade of the Czech Republic

Division of the sector and share of branches in revenues

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The chemical industry has a long tradition in the Czech Republic

Foreign TradeForeign trade (according to the CPA –Classification of Products by Activity)has been significantly influencing theeconomic results of this sector in thelast years , and ref lect ing i tscompetitiveness in the global economy.The exports of the sector were worthEUR 4.6 billion in 2007 (10.2% morethan in 2006), and imports amounted toEUR 8.5 billion (increase of 15.6%), sothat the deficit rose to EUR 3.9 billionand was EUR 723 million higher than in2006. The foreign trade turnoverexceeded EUR 13.1 billion, which wasa year-on-year rise of 13.5%. Germanyremained the major trade partner

Basic chemicals including primary plastics 60.5%Agrochemicals1%

Paints, varnishes,and similar

coatings 4.1%

Pharmaceuticals18%

Soaps, detergents, cosmeticand perfumes 10.3%

Other chemicalproducts 4.6%

Man-madefibres 1.5%

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the last years, SPOLCHEMIE, a.s. builtplants to manufacture epoxy and alkydresins (Epispol l and Epispol 2) and thuscaptured third place among Europeanepoxy resin producers. The company has expanded its manufacture of

synthetic sapphires, is considering theconstruction of epichlorhydrin plants inMalaysia and the USA, and is purchasingtechnology for the construction ofa membrane electrolysis unit to producehydroxides and chlorine. The majorinvestors include LINDE GAS, a.s., thelargest Czech manufacturer of technicalgases, now building the first hydrogenstation, DEZA, a.s. (intensification ofanthraquinone and esters production),Rigips. s.r.o.(factory to make foampolystyrene EPS), and BorsodChem-MCHZ, s.r.o. (expansion of anilinemanufacture).

Investment into the pharmaceuticalindustry in the Czech Republic has beenhigh in the last years and went mainly tothe manufacture of generics. Detailedinformation is in a separate article onthis branch.

The list of projects is long, and yetexperts believe that investment into theCzech chemical industry is insufficient.Dominant in their structure are bulkproducts with a lower value addedrather than products of qualif iedchemistry and special products witha higher value added. This worsens thebalance-sheet of the chemical industry,as special products which are notavailable from domestic productionmust be imported.

Development in the Sector in 2008Preliminary results of the sector in thefirst half of 2008 (in constant prices)

show slight growth against the sameperiod of 2007 (6%), but chemicalcompanies are experiencing a verydifficult period. They had to come togrips with record growth in petroleumprices combined with the record rate at

which CZK strengthened. The revenuesof enterprises were rising, but the year-on-year net profit declined. This appliedespecially to the UNIPETROL, a.s.,holding, which had to spend muchhigher amounts on hedging againstchanges in petroleum prices. Theforeign trade development of the sectormore or less copied the 2007 trend. In

the first half of the year, exportsincreased almost by 20%, to EUR 2 816million, and imports by 17.4%, to EUR 4 900 million. The deficit was by EUR258 million higher than in the sameperiod of 2007.

Position of the Sector in EU-27The Czech chemical industry ranksamong the less important ones in theEU-27 and, according to CEFIC data, itsshare ranged around 1% of EU revenuesin 2006. This share is expected to bebelow this value in 2007, since theEuropean Union was enlarged withRomania and Bulgaria. The CzechRepubl ic’s book added value peremployee is below the average in the EUand its most developed countries – thisindicator has been ranging around EUR30 000, while it was three-fold onaverage in the EU-25 in the last years.The main reason is the different productstructure: bulk products are dominant inthe Czech Republic, whereas thedeveloped countries of the EU and theworld are transferring their manufactureabroad, especially to Asia, and domesticproducers concentrate on competitivechemical specialties with higher valueadded, based on knowledge economy.

On the contrary, the accession of theCzech Republic to the EU in 2004 gave

Main economic indicators in 2005-20072005 2006 2007 1) 2007/2006

index

Revenues from the sale of products in EUR million, c.p2) 4 583 4 758 5 056 106.2

Book value added in EUR million, c.p.2) 1 247 1 305 1 356 101.3

Number of employees 37 591 36 929 37 415 101.3

Exports in EUR million, cr.p.3) 3 648 4 188 4 616 110.2

Imports in EUR million, cr.p.3) 6 354 7 393 8 544 115.6

1) preliminary data2) c.p. - constant prices3) cr.p. - current prices; according to the Classification of Products by Activity (CPA)Note: revenues – organisations with 20 and more employeesValue added – organisations with 100 and more employeesSource: Czech Statistical Office, Ministry of Industry and Trade own calculations

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Pharmaceutical Industry in the Czech Republic

Milan Dráždil, Ministry of Industry and Trade, e-mail: [email protected], www.mpo.cz

The pharmaceutical industry is a high-tech sector. I t s products aremanufactured by chemica l orbiotechnological processes and serveboth human and veterinary medicine.The h igh va lue added topharmaceuticals rests on technologies,which result from complicated researchand highly qual i f ied labour. Theproducts are divided into two groups –branded (protected by patent) andgeneric (copies of originals with expiredprotection). New drugs result frommany years of research, verification andapproval, and yet revenues fully coverthe costs of research and developmentonly in three out of ten new products,according to the European Federation of Pharmaceut ica l Industr ies andAssociations (EFPIA).

The pharmaceutical industry has twobranches – the manufacture of basicpharmaceutical products (NACE 24.41)and the manufacture of pharmaceutical

preparations (NACE 24.42) includinghomeopathics, vaccines, antiserums,and dental fillings. NACE 24.42 hasa much higher share in revenues (approx90% in the EU, approx 70% in theCzech Republic).

Results in 2007In 2007, 44 organisations with 20 and

more employees operated in the Czechpharmaceutical industry and theirrevenues totalled EUR 909 million (1%more than in 2006). The branchaccounted for 18% of NACE 24revenues, and almost 26% of bookadded value, and had the same share inthe number of employees. In themanufactur ing industry, the

a boost to trade with this grouping. Thisis documented by the preliminary resultin 2007, when the EU-27 accounted for80.5% of the Czech export of chemicalsand 78.9% of the Czech import ofchemicals. The main trade partners ofthe Czech Republic are its neighbouringcountr ies , and th is i s a logist icadvantage. Germany had the largestshare in NACE 24 foreign trade in 2007(almost 25%), followed by Slovakia(7.8%) and Poland (7.1%). In 2007, theCzech Republic had a deficit of EUR 1.3billion in trade with Germany, buta surplus of EUR 223 million in tradewith Slovakia and EUR 112 million intrade with Poland. The Czech Republichas a permanently high deficit in tradewith other West European countries. In2007, for example, EUR 483 million withFrance, EUR 439 million with theNetherlands, and EUR 292 million withBelgium.

Prospects for the Near FutureThe prospects of the Czech chemicalindustry for the near future must beseen in a broad context in expectationof a lower rate of growth in the global,European, and Czech economy. Theeconomic growth of the sector is in thehands of foreign trade which, however,must come to grips with the strong CZK,as well as lower rate of growth in theEuro area and particularly in Germany,which is the largest trade partner of theCzech Republic. In June 2008, forexample, Czech enterprises exportedtheir products at prices 8.1% lower thana year ago, while the year-on-yearimport prices declined by 5.7%, and,moreover, this was influenced by the biggrowth in petroleum prices. Domesticfirms cannot rely too much on domesticconsumption, as the economy leadersare sectors with strong pro-exportorientation (and foreign demand is on

the decline), and the flow of foreigninvestment slowed down in 2008.Positive is the expected decline inpetroleum prices and weakening ofCZK, but on the contrary, the nextmonths could bring a lower rate ofgrowth in the export of chemicals to thelargest partners, Germany, Slovakia, andPoland in view of a probably lowereconomic growth. These facts indicatethat the year-on-year increase in Czechchemical industry revenues in constantprices will be approximately 3–5% in2008, and investment will be slowercompared with 2007.

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Main economic indicators in 2005-20072005 2006 2007 1) 2007/2006

index

Revenues from the sale of own products in EUR million, c.p.2) 836 900 909 101.0

Book value added in EUR million, c.p.2) 288 345 350 101.5

Number of employees 9 288 9 576 9 673 101.0

Exports in EUR million, cr.p.3) 558 702 812 115.7

Imports in EUR million, cr.p.3) 1 674 1 791 2 217 123.81) preliminary data2) c.p. - constant prices3) cr.p. - current prices; according to the Classification of Products by Activity (CPA)Note: revenues – organisations with 20 and more employeesValue added – organisations with 100 and more employeesSource: Czech Statistical Office, Ministry of Industry and Trade own calculations

A N A LY S I S

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Indian company GlenmarkPharmaceuticals. In 2008,foreign firms took control ofanother two Czechpharmaceutical companies –Tamda, a.s. in Olomouc waspurchased by the BelgianArseus, and Interpharma,a.s.in Prague was acquired bythe Japanese pharmaceuticalg iant Otsuka. W ith theexception of WALMARK, a.s.in Třinec (a leading Europeanmanufacturer of nutritionsupplements and drugs,which has a number ofbranches abroad), this hasleft in Czech hands mainlysmall companies, such asHerbacos-Bofarma, s.r.o.,Ardeapharma, a.s., whichmakes infusion solutions,Bioveta, a.s., a producer of gener ics , and thebiotechnological companyI.Q.A., which recently signeda lucrative licence agreementwith a prominent USpharmaceutical company.Most of these are companieswith an annual turnover ofseveral dozen million EUR,

and since consolidation continues onthe Central European market, otheracquisitions can be expected also in thefuture.

Foreign TradeThe pharmaceutical industry ranksamong branches with the highest deficitin foreign trade. In 2007, its exportswere worth EUR 812 million (almost16% more than in 2006), and importsamounted to EUR 2 217 mi l l ion(increase of 23.8%) and the deficitexceeded EUR 1.4 billion, which wasEUR 416 million more than in 2006. TheCzech Republic manufactures a limitedrange of drugs, and due toa permanently large demand theirimport has been increasing at a higherrate than their export.

Investment in the BranchSince health care is a priority in theCzech Republic, the pharmaceuticalindustry is permanently attractinginvestors, as proved by several recentexamples. In 2007, LONZA BIOTEC,s.r.o. completed an investment of someEUR 40 mi l l ion (pharmaceut ica lenzymes) and PLIVA-Lachema, a.s.expanded its production with a newcytostatic injections line at the cost ofapproximately EUR 20 million. Zentiva,a.s., and WALMARK, a.s. are investinglarge amounts into development, andIVAX Pharmaceuticals, s.r.o. is beginningto build a new plant at the cost of some

pharmaceutical share was almost 0.9%in revenues, approx 1.5% in valueadded, and 0.9% in the number ofemployees. The bas ic industr ia lindicators of the branch from 2005 to2007, including trade exchange, areshown in the following table

Most of the main manufacturers anddistributors of drugs are in foreignhands at present. Sanofi-Aventis andtwo Dutch companies have the highestshares in Zentiva, a.s., the largestpharmaceut ica l company; IVAXPharmaceuticals, s.r.o. in Opava isowned by the Israeli TEVA Group; PLIVA-Lachema a.s. has been newly owned bythe US Barr Pharmaceuticals since 2006;the majority owner of LONZA BIOTECs.r.o. is the Swiss Lonza group, andMedicamenta, a.s. is owned by the

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EUR 40 million to make tablets and hardgelat ine capsules . The MasarykMemorial Cancer Institute in Brnocommenced the manufacture ofradiation drugs in May 2008.

Position of the Branch in EU-27The pharmaceutical industry belongs to

the main sectors in the European Unionand, according to data of the EuropeanChemistry Council (CEFIC), accountedfor 28% of the revenues of the EUchemical industry in 2006, while thisshare was 18% in the Czech Republic.Of all sectors and branches in the Union,the pharmaceutical industry shows the

highest value added per employee,followed by the chemical industry asa whole and then at a distance by themanufacture of office machines andcomputers, basic metal production, andthe automotive industry. According todata of "Panorama of EuropeanBusiness, Edition 2007", this indicatorhas exceeded the value of EUR 100 000per employee, as compared with EUR 36 000 in the Czech Republic in2007.The main reason for this strikingdifference is the dominant position ofgener ics in the portfo l ios ofpharmaceutical firms in the CzechRepublic.

Development in 2008 andProspects for the Near FutureThe results of the Czech pharmaceuticalindustry were not encouraging in thefirst half of 2008, revenues in constantprices declined by 5.7% in the year-on-year comparison (mainly due to lowerdomestic revenues of Zentiva, a.s.). Thiswas caused mainly by the mandatoryfees for visits to physicians and medicalprescriptions, which were introduced asof the beginning of 2008 and reducedthe demand for drugs. Companies arecountering this by increased support totheir marks. Nevertheless, the prospectsof the branch can be seen optimisticallyand the situation should improve in thesecond half of 2008. Due to goodresults in Central and East Europe,exports were increasing more rapidly (by63.8% to EUR 462 million) than imports(by 22.2% to EUR 1.3 billion), but inview of the lower starting amount ofexports the year-on-year rise in thedeficit was EUR 46 million to EUR 839million. Revenues in this branch areexpected to increase, since several largeinvestment projects are being built orlaunched. Demand for drugs i sinfluenced by the cyclic fluctuation inthe developed economies only partially,but the ageing of the population andprolongation of human life must betaken into consideration, as theyincrease drug consumption in this agegroup. And so it can be expected thatthe interest of investors in thepharmaceutical industry will last and itsconsolidation will continue.

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The pharmaceutical industry has the highest value added per employee

I N V E S T M E N T

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Chemical and Pharmaceutical Industry,Traditional Sector with Bright Prospects

Jiří Sochor, Martin Partl, Oldřich Dubský, CzechInvest, e-mail: [email protected], [email protected],[email protected]

The pharmaceutical and chemicalindustries rank among the most rapidlydeveloping branches of the economy.The Czech Republic has a long traditionin the manufacture of drugs andchemicals, and Czech scientists havebeen at the birth of many significantdiscoveries which influence everydaylife. CzechInvest, the Investment andBusiness Development Agency, supportsthese branches.

Pharmaceutical IndustrySeveral large companies which havea big share in the tota l Czechmanufacture of pharmaceut ica lpreparations are operating in the CzechRepublic at this time. These companiesinclude PLIVA-Lachema, Zentiva, andIVAX Pharmaceut ica ls , which areproducing mainly generics – drugswhich are produced without patentprotection after its expiration. Thepatent protection of drugs from whichgenerics are derived range between 15and 20 years, depending on the laws ofthe country in which they are produced.Patents have been introduced due tothe huge funding and the long timerequired for drug development. Theirholders are very few pharmaceuticalcompanies such as Novartis or Roche.None of the large producers of originaldrugs is based in the Czech Republic asyet, but many formulas for excellentmedicaments originated in this country– including Viread, the most effectivepreparation for AIDS treatment atpresent, from Antonín Holý’s laboratory.In the manufacture of gener ics ,however, we are a giant on theEuropean market mainly due to Zentivaof Prague, which is expanding throughacquisitions to southern Europe andTurkey. One of the largestpharmaceutical companies of the world,the Israeli TEVA, purchased a genericsmanufacture plant in Opava in 2006,and is planning to invest EUR dozens ofmillions into its enlargement. Genericdrug manufacture in the Czech Republiccan be expected to be increased in the

future. On the basis of a EuropeanUnion Directive, the member countriesare beginning to give increased supportto research, and development. In 2005,the Czech Government Council forScience and Technology approved a rulewhich ranks b iotechnology andpharmacy among priority branches ofbasic research, and thus increased theirfunding. CzechInvest is participating inthe division of these resources bydistributing money from structuralfunds. These incentives can be used, forexample, for the establishment ofa centre in support of development ora new production line. Very importantto research and development in theCzech Republic is Lonza, the only largepharmaceutical company in this countryto have i ts own research anddevelopment department. This companyhas been making repeated use of theabove mentioned means of support.

Foreign companies regard the CzechRepublic as an important gateway toEast Europe, and so very manypackaging and manufacturing lines arein this country.

Chemical IndustryThe chemical industry in the CzechRepubl ic i s supported f rom thestructural funds of the European Unionand investment incentives. Followingprivatisation in the 1990s, the chemicalindustry has been more or lessconsol idated and saturated.Consequently, the chance of foreigncompanies to become involved in theindustry is narrowed to the possibility ofacquisition of Czech companies. Thechief players on the market include theUnipetrol group, owned by the PolishPKN Orlen, Synthos, and Spolchemie.

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The Czech Republic is a country very attractive to investors

L E G I S L AT I O N

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New Chemical Legislation – Implementation of REACH Regulation and Preparation of GHS Regulation

The new European chemical legislationis based on two regulations of theEuropean Parliament and Council –REACH and GHS. The publication ofRegulation 1907/2006 concerningREACH, Regis t rat ion, Eva luat ion,Author i sat ion and Rest r ic t ion ofChemical substances in the EuropeanUnion countr ies , i s fo l lowed bypreparations of the GHS Regulation onthe classif ication, packaging, andlabelling of chemical substances andmixtures.

Implementation of REACHRegulationThe REACH Regulation, in effect as of 1 June 2008, requires all manufacturersand importers of chemical substancesas such, chemical substances containedin preparations/mixtures, and chemicalsubstances contained in articles (thesubstance is released from the articlesand the release of the substance fromthe articles presents a risk to humanhealth or the environment) to registerthem with the European ChemicalsAgency in Helsinki.

The European Regulation can be usedas a legal provision directly. Thecompetence of the state administrationof the Czech Republic and sanctions forfailure to fulfil the provisions of theRegulation are stipulated in legislationof the Czech Republic. In the case ofthe REACH Regulation, the Ministry ofthe Environment, the competent body,put forward a bill amending Act No.356/2003 Coll., on chemical substancesand chemical preparations, and onamendments to severa l laws asamended later. The Act was passed atthe turn of October and November2008.

The Association of Chemical Industryof the Czech Republic (SCHP ČR) hasestimated that domestic enterprises willhave to spend a total of EUR 400million on the fulfilment of the REACH

Regulation; has run courses on REACHfor more than 1 200 employees ofCzech companies wi th in theAdaptability and Competitiveness ofthe Chemical Industry project, which issupported by the Ministry of Labourand Social Affairs of the Czech Republicand the European Social Fund; hasestablished the ReachSpektrum limitedl iabi l i ty company, which provides

schooling on the REACH Regulation,and professional consultation servicesfor Association of Chemical Industry,including services as a sole agent ofproducers from third countries.

Preparation of GHS RegulationThe publication of the GHS Regulationis expected at the turn of 2008/2009. Inorder to minimise the costs of the

Vladimír Janeček, Association of Chemical Industry of the Czech Republic, e-mail: [email protected], www.schp.cz

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application of the new system, thefulfilment of the duties stipulated in theGHS Regulation will come gradually.The transition period, in which newleg is la t ion re lat ing to chemica lsubstances and chemica lpreparations/mixtures will be phased inand the present legislation phased outconcurrently, begins on 1 October 2010and ends in 2015 (for substances) andin 2017 (for preparations/mixtures).

The costs of the introduction of thenew system will have to be monitoredconsistently for GHS advantages tocome soon. The quantification of costsconnected with the reclassification ofchemical substances, preparations fornew labelling of chemical substancesand preparations, drafting of newsafety lists, notification/reporting ofsubstances as such and substancescontained in preparations to theEuropean Chemicals Agency, and theuse of alternative names of chemicalsto harmonise classification, is to beincluded in a study which has beenordered by the Ministry of Industry andTrade f rom the ReachSpektrumcompany. This analysis of the GHSRegulation impacts is oriented towardsthe manufacturers of hazardouschemica l substances andpreparations/mixtures in the CzechRepubl ic ( spec i f i ca l l y chemica lsubstances placed on the EU marketbefore 1 December 2012 orpreparations before 1 June 2015).

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REACH – the regulation is based on the principle that themanufacturers, importers, and final users must ensure that they aremanufacturing, placing on the market, and using substances whichare not harmful to human health and the environment. It is ofEuropean origin (the principles of the new European chemical policywere formulated by the European Commission in the White Book ofFebruary 2001) and is beginning to influence the legislation of severalextra-European countries.

GHS – the regulation is a globally harmonised system agreed upon bythe UN Economic and Social Council, which defines criteria for uniformsafety information on hazardous chemical substances provided todifferent targeted groups, including consumers, workers, and personsoperating in emergency situations and transport. The European Unionhas been involved in this process since the beginning, and is preparingthe relevant Regulation of the European Parliament and Council.

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E D U C AT I O N

The Institute of Chemical Technology,Prague (ICT Prague) is the biggesteducational institution of its kind inCentral Europe. It is building on the 200-year tradition in the teaching of chemicaltechnology in Bohemia. Its tradition and large profess ional potent ia lpredetermine its education of highlyregarded experts. Many famous names

are connected with the Institute ofChemical Technology, Prague, such asNobel Prize winner for chemistry, VladoPrelog, inventor of soft contact lenses,Otto Wichterle, Emil Votoček anda number of others who had significantinfluence on the standard of thechemical industry as well as our everydaylife.

ICT Prague has four faculties:

Faculty of Chemical Technology isfocused on the requirements of thechemical industry to optimise anddevelop new technological procedures.The scientific research of the faculty isclosely linked with its teaching, and canbe divided into two areas: the chemistryand technology of materials with a viewto the complicated relationship betweenthe composition, preparation, andproperties of new materials, andimprovement of the utility properties oftraditional metallic and non-metallicinorganic materials and polymers.

Faculty of Environmental Technologyproceeds from the traditional orientationtowards the technology of fuels andwater, and in accordance with the latesttrends puts great emphasis onenvironmentally friendly technologies.The Faculty has ideal conditions for itsfocus on environmental protection,which are given by the professionalcapacity and background for thedevelopment of modern technologiesfor air and water protection, chemicaland energy fuel process ing,development of alternative fuels, andthe l iquidat ion of industr ia l andmunicipal waste.

Faculty of Food and BiochemicalTechnology is concerned with all areas offood-related chemistry, technology andbiotechnology, with emphasis onimprovement of the quality of food,optimum nutrition of the population,application of progressive processes toachieve higher upgrading of rawmater ia ls , and biochemical ,microbiological, and molecular-geneticstudies as the theoretical basis formodern biotechnology. Excel lentprofess ional background, modernequipment, and technological units rankthe Faculty among centres of food andbiological sciences of internationalsignificance. The Faculty has laboratoriesfor food analysis, food microbiology and

Institute of Chemical Technology, PragueEducates Top-ranking Experts

Eva Marková, Institute of Chemical Technology, Prague, e-mail: [email protected], www.vscht.cz

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ICT Prague is the largest institution of its kind in Central Europe


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detection of genetically modified food.They are connected to the network of EUlaboratories.

Faculty of Chemical Engineering involvesin its research and development thecomplete range of chemical andprocess ing engineer ing, f romengineering experiment to computer-assisted modelling, analysis, measuringand management, inc luding themethods and means of chemical andphysically-chemical analysis of thepropert ies and behaviour ofbioengineer ing and chemical-engineer ing systems. The Faculty

provides a combination of naturalscientific and technical education, whichmeets the requirements of the moderneducation of engineers. Universality isthe characteristic feature of all studybranches at the Faculty. The graduatesare successful in managerial andtechnical posts, and are well equippedfor operations in applied research,development, designing, consulting, andtrade.

The Institute of Chemical Technology,Prague is strictly focused on moderntrends in the education of chemicalengineers. Some of the study branchesare not offered by any other university in

the Czech Republic. Individual approachto students is characteristic of ICTPrague. From the first year, students canjoin in research projects and participatein basic and applied research andpossibly in development for the industry.

In 2006, ICT Prague became the ninthEuropean university entitled to add to itsBachelor Diplomas the ChemistryEuroBachelor label. The holders of thislabel, which proves study results ofEuropean quality, can be admitted formaster studies at any university thusaccredited.

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W E A R E I N T R O D U C I N G

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MEGA a.s. – Leader in Electro-membraneProcesses

Luboš Novák, MEGA a.s., e-mail: [email protected], www.mega.cz

A Czech private company, one of theworld leaders in electro-membraneprocesses, is based in North Bohemia, inthe industrial zone of Stráž pod Ralskem,a town with four thousand inhabitants.In November 2007, Luboš Novák, MEGAa.s. Chairman of the Board and GeneralManager, was awarded the InventionPrize in the Česká Hlava (Czech Brains)project. He shared the prize for thedevelopment of ion exchangemembranes and the use of membraneprocesses in ecologic and productionapplications with his colleague of manyyears, Miroslav Bleha of the Institute ofMacromolecular Chemistry of theAcademy of Sciences of the CzechRepubl ic . MEGA products andtechnologies are defeating their rivals,multinational giants such as the "water"division of General Electric.

Main Emphasis is Laid on Innovation The company was established in the1970s. Since the 1990s, MEGA a.s. hasbeen a suppl ier of technologicalcomplexes and complete services inenvironmental protection with focus onthe technology of water treatment in theCzech Republic and abroad. Besides itsdominant position on the domesticmarket, the company is building itsreputat ion abroad. The companygradually became a clear-cut, innovativecompany which offers top-quality

technologies in the application ofmembrane processes, especially in watertreatment and the pharmaceutical andfood industr ies. I ts product ionbackground, research and development,and the quality of services rank MEGAamong world leaders in these fields.

The company has realised that waterwill be the most strategic and valuedcommodity with the best prospects inthe near future. Competition on themarket connected with water supply andtreatment is very strong, and prices aredictated by General Electric, Siemens,Veolia, RWE and other concerns.

Product Diversification YieldsSuccessThe emphasis that MEGA a.s. puts on itsown research is unusual in this country.Without it, any enterprise would beincapable of innovation and thus doomitself to extinction. The companyreinvests its entire profit. Proof of this isthe new modern complex in Stráž podRalskem, and planned capita lconstruction.

The company realised years ago that itis better to stand on two (or maybethree) legs, and so in addition to watertreatment, it ventured into anotherhuman need and found applications forits technologies in the food industry. Itis supplying technologies to breweriesand to dairies for the processing ofwhey; previously whey was regarded as

waste but then it began to beutil ised due to technologiessupplied by MEGA a.s.. The thirdsector in which the companyoperates is surface treatment.S ince the mid-1990s, Thecompany has been the soleagent of PPG, the US paintmanufacturer, for the Czech andSlovak Republics. The link withMEGA’s main activity is apparent:almost all automobile plantsworldwide use technologies withmembranes for body paintingmanufactura in St ráž podRalskem.

Thanks to its orientation, MEGA

a.s. is not dependent on domesticprocurement, although this was mostprofitable in the 1990s at the time of the"boom" of environmental burdenliquidation. The time has come toexport. Through to its subsidiary, MEGAProfiline, the company is doing well onthe very promising market of Russia. Thecompany’s 2007 turnover of EUR 16million could be higher by 6 million thisyear, and its target is to get close to EUR40 million in three years. This result hasbeen achieved with only 150 dedicatedemployees.

That MEGA a.s. is known in the worldis proved by the interest of potentialinvestors and a number of rivals whohave offered strategic partnerships.However, the owner of the companybelieves that its potential can increasethe productivity of labour, effectivenessand turnover for at least the next twoyears.

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Membrane under microscope

Filter based on the unique membranetechnology

E N T E R P R I S E

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WALMARK is Planning Expansion to West European Markets

Kateřina Ondřejková, WALMARK a.s., e-mail: [email protected], www.walmark.cz

For several years, the pharmaceuticalcompany WALMARK has been animportant participant on the market ofnutrition supplements in the CzechRepublic and other countries. Due tomassive investment into technologies,control systems, and knowledge of itsemployees, it has one of the mostmodern pharmaceutical plants in thiscountry, which operates in accordancewith the Good Manufacturing Practices(GMP) standards, and holds a licence forthe manufacture and distribution ofdrugs. Besides nutrition supplements,which account for the major part of itsturnover, the company has been

producing medical preparations sincethe autumn of 2004.

WALMARK – Leader on theCentral European MarketIn 2007, WALMARK reached its strategicgoal set in 2001 and, according to dataof renowned agencies IMS Health andCegedim, became the Central and EastEuropean leader in food supplements.After 16 years in the business itexpanded successfully in such a difficultbranch as pharmaceutical productioneven in the present globalised world. Itcontinues to be a Czech company nowowned by 8 shareholders, domestic

natural persons. The company stocks arenot on the public market.

In the past five years, WALMARKincreased i t s pharmaceut i ca lproduct ion more than 2 .5- fo ld ,established six new foreign branches(Hungary, Lithuania, the Ukraine,Bulgaria, Latvia, and France), andraised the number of i ts exportdestinations to more than two dozencountries including those in WestEurope and the Midd le Eas t .Conso l idated resu l t s in the las tbusiness year showed the share offoreign revenues in the total revenuesof the WALMARK group at almost

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70%, and the company expectscontinued growth. This testifies toWALMARK’s pos i t ion of aninternational player who generatesmost of its revenues abroad. WALMARKhas been opening one foreign brancha year on average in the recent years,and wants to maintain this tempo.

First Branch in West EuropeThe expansion of WALMARK’s foreigntrade is indicated by the opening of itsfirst branch in West Europe in February2008. The new branch, based in Paris,followed up the successful operations ofthe export department which had beenselling WALMARK products on theFrench market for three years. Successon foreign markets requires carefulconsideration of their specific features,and choice of the best marketingstrategy and most suitable products.

WALMARK is also doing very well inEstonia, Kazakhstan, Azerbaijan, andSerbia. But it also pays great attention tomarkets of the countries of the formerYugoslavia (Slovenia, Croatia, Bosnia and

Herzegovina), Cyprus,Macedonia, and thePersian Gulf countries.

WALMARK IsDeveloping NewProducts withGood ProspectsThe WALMARKportfolio includes 200products, but everycountry has i tsfavourites. The mostpopular productsinclude ArhtrostopPlus, GinkoPr im,Marťánci, Prostenal,Vápník-Hořčík-Zinekand Urinal.

This year, WALMARK acquiredAminostar, the leading Czechmanufacturer of nutrition supplementsfor sportsmen, and will expand itsoperations to a segment of the market.Sport nutrition offers many synergies inthe range of supplements andmedicaments in terms of development,

manufacture, sale, and marketing. It isa segment with very good prospects onthe domestic and foreign markets.WALMARK will introduce Aminostar onforeign markets through the network ofits branches and operations of its exportdepartment.

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Tablet coating machine

Allergens for Laboratories Manufactured in the Czech Republic

BONAPOL , a . s . i s an impor tan tmanufacturer of natural allergens,especially pollens, which are designedfor laboratories and pharmaceuticalproduct ion. Po l len , which i s anal lergen source most diff icult torenew, serves as raw material for themanufac tu re o f d i agnos ing andimmunotherapeutic drugs. BONAPOLhas introduced the ISO 9001:2000quality management system, and thusmeets the str ict cr i ter ia for theobse r vance o f manu fac tu r i ngprocedures, preservation of allergenprofiles and the resulting purity ofpollens, which can exceed 99.5%acco rd ing to the c l i en t ’srequirements.

Way of Pollen CollectionDepends on PlantsBONAPOL specialises in pollens ofwild Central-European plants, mainlywoody species. Pollens of some herbsand g ra s se s a re co l l e c ted f romspecially grown monocultures. Thesecultures of European and non-originalspecies allow constant expansion ofthe range of products as well ascapacity, and minimise productionrisks.

Specific Pollen Species RequireSpecific Production ProceduresIn view of the morphological andbiochemical diversity of pollens andcontaminating part ic les, different

po l l en spec i e s requ i re spec i f i cmanufacturing procedures. For thisreason, research and development,conduc ted concu r ren t l y w i thproduction, is crucial to companyactivity. Their results are applied bothin the phase of col lect ions andprocessing. These procedures andspecial equipment for pollen cleaningare protected intellectual property.

The annual pollen production rangesaround hundreds of kilograms. Atpresent, the entire production isexported.

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Petr Kohout, Centre of Biological Technologies, e-mail: [email protected], www.greentech.cz/cbt

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C Z E C H T O P

PLIVA-Lachema became a part of the New Je r sey -based US Ba r rPharmaceuticals, Inc. in 2006. It offersits clients the advantages of the fourthlargest multinational generic companyworldwide and ranks among the mostimportant pharmaceutical producers

and drug suppliers of the world.PLIVA-Lachema is based in Brno, butdue to its product portfolio and the USparent company it provides cancertreatment to patients all over theworld.

Unique Position inOncologic PreparationsProductionIn the Barr group, PLIVA-Lachema is just i f iab lyregarded as a centre ofexce l lence of thedevelopment andmanufacture of oncologicpreparat ions ( for thetreatment of tumourdiseases). Its long experiencein such compl icatedtechnologies as cytostatics,highly qualified experts, andmanufacturing equipment ofworld standard rank thecompany among the bestworldwide. The most difficultproduction technology in thecompany and the world is themanufacture of cytostaticsterile forms. They are madeon a single production line atpresent . I t s capac i ty i sinsuff ic ient and so theconstruction of a second linecommenced last year.

In order to maintain thequality of the manufacturedproducts, the continuity ofPLIVA-Lachema production,and espec ia l l y i t s ownproduct ion of s te r i l ein ject ions, the company i s p repar ing act i vepharmaceutical ingrediences(AP I ) . Tab le t s of h igh lyeffect ive substances aremade on one production linein the tablet pavilion, whichranks among the top Czechfacilities due to the use ofpressure suits to protectworkers.

Company Supports Research andDevelopmentThe combination of the professionalknowledge and experience of thecompany’s researchers with those of theBarr group gave rise to a very strongteam capable of keeping pace withpharmaceutical development in theworld. PLIVA-Lachema gives increasedsupport to projects involving anti-tumour drugs. Almost all activities areheading towards the development ofgeneric curative preparations which areplaced on the market after the patentprotection expires.

High Degree of ControlGuarantees SystemEffectivenessSince PLIVA-Lachema supports the jointobjective of the public health care andprivate sectors – to provide patients andphysicians with drugs of high quality –the quality system matches the specificenvironment of the manufacture ofcytostatic drugs and those with highlyeffective substances. The effectivenessof the system is consistently controlledby regular inspections by the StateInstitute for Drug Control and foreignauthorities (such as the US Food andDrug Administration), and customeraudits.

PLIVA-Lachema Feels SocialResponsibilityThe quality of human life is closelyconnected with the quality of theenvironment, and so PLIVA-Lachema isdoing more than just fulfilling the legalduties concerning the protection of thehealth its staff and the environment, it isjoining voluntarily activities aimed atpermanent improvement in this respect.It is accredited with certificates for EMS(environmental protection) and SMS(health protection and safety at work),which confirm that the company isaware of respons ib i l i ty for theenvironment.

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PLIVA-Lachema, Leading Czech Manufacturer of Generic Drugs

Jana Šilarová, PLIVA-Lachema a.s., e-mail: [email protected], www.lachema.cz

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UNIPETROL RPA, s.r.o. produced its fourmillionth tonne of polyethylene in 2008.The production of high-densitypolyethylene (HDPE) manufactured underthe commercial name of Liten was launchedin July 1976 with a capacity of 80 000 tonsin four reactors and six granulators. In 1999,the increasing demand dictated thedecision to build a new unit with a capacityof 200 000 tonnes. The unit went intooperation in July 2002. The new HDPEmanufacture is highly flexible – its range is40 types of the Liten polyethylene.

Polyethylene products are widespread.The material is used for the manufacture ofinjected, blown, extruded and pressedproducts.

Polyethylene Is EverywherePolyethylene is the raw material for a varietyof household utensils. Shops usepolyethylene crates for bakery products,fruit, vegetables, and beverages. Food iswrapped in polyethylene sachets, bags, andsacks. Large amounts of polyethylene areused for the making of blown cans andbarrels for the transport and storage ofchemicals including hazardous ones. TheLITEN polyethylene pipes are used for watermains. A large amount of polyethyleneserves in the building industry in the form ofextruded boards and profiles. Themanufacture of injected cartouches forbonds and glues is on the rise.

Polypropylene manufacture is to arrive ata similar milestone within three years. In2008, it should turn out the 3.5 millionthtonne since production commenced in1976. The original technology with anannual capacity of 120 000 tonnes couldnot meet demand and, as in the case ofpolyethylene, the construction of a newunit was decided in 1999. It went intooperation in November 2002. The newtechnology is flexible and allows themanufacture of more than 30 types.

Polypropylene from Unipetrol inthe Automobile IndustryPolypropylene products are widespread ineveryday life. Their broad range includesinjected household utensils, bowls and

cups, injected or moulded pots and jars forcream, yoghurt, and cheese, blowncontainers for household detergents, andhousehold appliances components. Manyloose products and crops are packed in bagsand sacks made of polypropylene (PP)fabric. PP fibres are used to makegeotextiles for the building industry andship ropes. PP pipes serve for hot and coldwater distribution and floor heating.

In the last few years, PP consumption hasbeen soaring in the automobile industry.Many components are made ofpolypropylene and compounds in which PPis modified by various fillers to improve itsutility properties. Typical products includebumpers and mirror casings.

UNIPETROL RPA in numbersA share of plastics sales in total revenues ofUNIPETROL RPA is approx. 22% (13% PEand 9% PP). From other products ofUNIPETROL RPA, cca. 23% represents thesale of monomers and agrochemicals (BU II)and 55% represents the sale of refineryproducts, namely fuels (BU I).

From total plastics sales company sells44% on domestic market (28% PE and66% PP), approx. 56% is being exported.

The most important foreign territories aregenerally EU countries (totally 93% ofplastics production, including sales in theCzech Republic, is being sold to the EU).

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Milestone in the Manufacture of Polyolefins in UNIPETROL RPA, s.r.o.

UNIPETROL RPA, s.r.o., e-mail: [email protected], www.unipetrol.cz

Unipetrol is a group of companies operating in the petrochemical industry inthe Czech Republic. In 2005, it became a part of the PKN Orlen Group, thelargest petrochemical company in Central Europe. Unipetrol is focused onpetroleum processing, fuel distribution, and petrochemical production. TheUnipetrol Group ranks among the leaders of this sector in the Czech Republicand Central Europe. Unipetrol has some 4 000 employees and its revenuesranks, it among the most important companies in the Czech Republic.

UNIPETROL RPA – the company is an umbrella for the manufacture andwholesale operations of Unipetrol in refineries, petrochemistry, andagrochemistry. It originated on 1 August 2007 by the merger of Chemopetrol,Unipetrol Rafinérie, and UNIPETROL RPA.

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Zentiva – Five Years of Successful Development

Věra Kudynová, Zentiva, a.s., e-mail: [email protected], www.zentiva.cz

Zent iva i s an internat ionalpharmaceut ica l company whichspec ia l i ses in the development,manufacture, and sale of modernbranded generics. It holds leadingmarket positions in the Czech Republic,Turkey, Romania, and Slovakia. In recentyears , Zent iva has extended i tsoperations to Poland, Russia, theUkraine, Hungary, Bulgaria, and theBaltic countries and as a result it is nowone of the largest pharmaceuticalcompanies in Central and East Europe.In 2007 the Company had sales of EUR600 million.

The Company supplies approximately850 pharmaceut ica l products tocountries that have a total combinedpopulation of over 400 million people.The capac i ty of Zent iva’s fourmanufacturing plants in the CzechRepublic, Slovakia, Turkey, and Romaniais 850 million packs per annum makingit one of the biggest producers ofpharmaceutical products in Europe.

Successful Expansion to ForeignMarketsZentiva has achieved a number ofimportant achievements while buildingits business in the last few years. In2004, the Company issued new sharesas part of a successful IPO on the Pragueand London stock exchanges – Zentivawas the first company in the history ofthe Czech Republic, and amongstcompanies in the new countr iesentering the European Union, to acquirefunds to strengthen its balance sheet forfuture corporate development in thisway.

A key element of Zentiva’s profitablegrowth strategy has been to makeacquisitions to supplement organicexpansion. In the last five years theCompany has made st rategicacquisitions, which helped its expansionto important markets in the region. In2003, Léč iva merged withSlovakofarma, the Slovak leader, whichwas included into the Zentiva group inthe same year. In 2005, Zentiva affiliatedto i ts group the Romanianpharmaceutical company Sicomed, andin 2007 by purchase of a 75% stake the

Turkish company Eczaçibasi GenericPharmaceuticals. This latter acquisitionwas the largest in Zentiva’s history.

Focus on Primary Care Zentiva’s success has not just relied on

acquisitions. The reason, and maybe themain reason for Zentiva’s growth inrecent years has been its focus on thepr imary care segment of thepharmaceut ica l market . Genera lpractitioners, who are the providers ofprimary care and are the first point ofcontact for patients with the medicalsystem, now use modernpharmaceutical products to treat manydisorders prev ious ly t reated byspecialists. Zentiva’s products includeprescription drugs as well as consumerhealthcare medicines that are designedfor the treatment of cardiovasculard iseases, inf lammat ions, pa in,infections, disorders of the centralnervous system and the digestivesystem, and uro logica l d iseases.Zentiva’s focus on primary care is based

on a key e lement of theCompany’s corporate culture whichseeks to improve the quality of life inthe countries in which Zentiva operatesand it is not just driven by commercialreasons. A further factor which has

been crucial to the Company’s recentsuccess is the quality of its products,which meet all strict requirements ofEuropean laws covering the productionof pharmaceutical products.

Our Corporate ResponsibilityZentiva is an important player, and ina number of cases a market leader inmany of the countries of Central andEast Europe. This success naturallybrings with it responsibility for thesociety and cultures in which Zentivaoperates. As a result, the Companysupports science and its researchers co-operate with the academic communityas well as providing backing to cultureand sports. For example, Zentiva isa partner of the Czech and SlovakOlympic teams. ■

Revenues according product groups

Revenues from curative preparations according to countries

CRTurkeyRomaniaPolandSlovakiaRussiaOthers

Note: Net revenueSource: Zentiva

1st half of 2007

1st half of 2007

1st half of 2008

93%

34%

19%

15%

17%

8% 12%7%8%

9%

14%

10%

21%

26%

2%

85%2%

13%3%

1st half of 2008

Other revenues from contracted production and services

Pharmacy

API (ActivePharmaceuticalIngredients)

Other revenues

+32.3%

+19.9%

EUR 241million

EUR 357million

EUR 226million

EUR 303million

R E S E A R C H & D E V E L O P M E N T

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Czech Membranes Are Conquering the World

Miroslav Bleha, Institute of Macromolecular Chemistry of the Czech Republic, v. v. i., e-mail: [email protected], www.imc.cas.cz

Miroslav Bleha, a promising Czechchemist, won a Česká hlava (CzechBrains) 2007 award for the technologyof the manufacture of ionic membranesand the use of membrane processes in eco log i c and manufac tu r ingapp l i ca t ions , wh ich he has beendeveloping in the Institute for manyyears. He shared the award with MrLuboš Novák, Managing Director ofMEGA, a.s., which applies membranesin practice and proves their quality bywinning foreign tenders.

Could you describe thedevelopment of your uniquetechnology? What was theobjective of the research? Has itbeen achieved to its full extent?The research was conducted in responseto the requi rements of the thenCzechos lovak u ran ium indus t r y,specifically the treatment of wastewater from chemical mining. Basically, itinvolved the desal ination of largeamounts of waste water which had highcontents of sodium sulphate, a veryimportant chemical substance. But acquiring it from wastewate r by evapora t ion was ve ry uneconomic . Thedevelopment commenced before the fall of Communism,and the embargo on Western technologies induced our teamto find a totally new technology of membrane manufacture.We achieved the objective to develop a membrane whichcould be used in practice and compete with foreignmembranes.

Where is your technology used at this time?Does it serve in equipment based on ionicmembranes of your provenance?MEGA, a.s. has been doing well on foreign markets. Industrialwaste water treatment equipment is now serving at manyplaces in this country and abroad. Ourmembrane technology also won a tenderfor water desalination in Spain againstthe renowned General Electrics of theUSA. The technology is applied in theCanary Islands for the purification ofwaste water for irrigation. Besides theseappl icat ions, the pharmaceut ica lcompany LONZA uses ionic membranes incombination with electrical dialysis. Lastbut not least, mention is deserved by thefood industry, which uses our membranesfor the demineralisation of whey.

How are you co-operating with foreigncountries?Co-operation within the European Union and with Russia iswell established. Initially, however, the project was restrictedto the Czech Republic as we regarded it as our know-howand protected it thoroughly. We co-operated for a long timewith the British National Power company in the use ofmembranes in electricity storage. A success is the pilotpower plant in western England, which is using them for theconservation of electricity, its transformation into chemicalenergy and back for use when needed. We have also co-operated with the Japanese Tokuyama Company.

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Miroslav Bleha (left) and Luboš Novák (right)

Česká hlava – The (Czech Brains) project in support of the scientific andtechnical intelligentsia was opened in March 2002. It is a system ofactivities designed to popularise science and increase the social prestige ofdomestic scientists as the main contributors to the economic prosperity ofthe country. The annual highlight of the project is the award of the Českáhlava national prizes to the best innovators in science and technology. Theimmodest objective is to raise social awareness to the level of a kind ofnational Nobel Prize. Source: www.ceskahlava.cz

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R E S E A R C H & D E V E L O P M E N T

The Centre of Biological Technologies inNové Hrady, South Bohemia, is comprisedof a technology incubator, scientifictechnology park, and a technologytransfer centre. These are the basis of veryclose co-operation of the incubating firmsand a representative of the Centre in thesolution of incubation projects. The chiefobjective of the technology incubator is the creation of the best conditions for successful launch of innovative and development projects. Besidesadvantageous rental agreements duringthe project incubation period, the offerincludes a broad range of ancillaryservices to enhance the chance of theinnovative project to reach the stage ofsuccessful commercialisation.

Three Basic Parts of the ParkThe technology incubator hasa biotechnology hall and laboratorieswhich serve co-operation with theAcademic and University Centre in thedevelopment of innovative projects.

The scientific technology park is a basefor companies which develop hightechnologies, and a place for thegrouping of innovative business activitiesconnected with workers of the researchand academic area who ensure thedevelopment of firms and the basicfunctions of the park together with itsrepresentatives.

The technology transfer centre searchesthe academic area for results suitable forapplication in practice, and helps in theircommercialisation. The technologytransfer services of the centre are used by the incubating firms, researchorganisations, and institutions which co-operate in association with the Centre ofBiological Technologies.

These three units are essential forcorrect function of the technologyincubator, and their interconnectioncreates a very good environment for startup firms.

Technology Is Exchanged in Both DirectionsThe Nové Hrady centre is focused on the

Centre of Biological Technologies – CzechTechnology Incubator

Petr Kohout, Centre of Biological Technologies, e-mail: [email protected], www.greentech.cz/cbt

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transfer of technologies and theirapplication in practice in firms whichoperate biotechnology, biochemistry, andmolecular biology. The Academic andUniversity Centre transfers technologiesto and from the Czech Republic. Theincubator office provides consultationson intellectual property protection and inthis co-operates with patent officeprofessionals.

Successful companies are connected orco-operating with the technologyincubator in Nové Hrady. To give a betteridea, we introduce some of them.

B.P. MedicalThis company conducts sc ientif icresearch and development andmanufactures preparations containingbiological ly act ive substances. I tsturnover of approximately EUR 100 000ranks it among small and medium-sizedenterprises.

The company’s research is concentratedon the use of autotrophicmicroorganisms, and the application ofanimal cell and tissue cultures, which areused for pr imary test ing of thebiocompatibility of materials primarilydesigned for medical purposes, especiallydental implants, and most recently thetesting of findings in nanomedicine.

The company produces a number ofpreparations from various kinds of algaeof its own cultivation. The cultivationconditions and the specific features andcontents of biologically active substancesare equally important. The algae andblue-green algae are produced in thecompany’s own cultivation systems incontrolled conditions which it developed.The products thus manufactured arenutr it ion supplements, cosmeticpreparations (ointments, creams, bathsalts) , animal feed supplements(carotenoid mixtures), and fish feedsupplements, including aquarium fishfeeds.

A big advantage of the company is itsown collection of applied autotrophicorganisms which it regularly controls,maintains, and enriches from naturalresources. The second big advantage isco-operation with the Czech scientific-technical base, and the third one is itsknow-how including protectedintellectual property.

HIC & services s.r.o.The company commenced thedevelopment of crystallising methods forvery pure silicon four years ago. The

Supportive Services Offer of the Centre of BiologicalTechnologies– Consultation and assistance in working out the programme of an innovati-

ve or development project– Consultation and assistance in looking for the funding of an innovative or

development project– Support in project control– Education focused on development and innovation business– Intellectual property protection - consulting and co-financing– Verification and demonstration of the project in real conditions

Professional Consultations Provided at the Centre of BiologicalTechnologies– Technical consultations based on the knowledge of the staff and collabora-

tors of the scientific technology park– Technical assistance and testing at the Centre of Biological Technologies,

which participates in the operation of unique apparatus– Legal consultations (studies, manuals, mediation of partnership)– Marketing and education– Arrangement of co-operation exchanges, workshops, and conferences

Building of the technology incubator

development was conducted in academicinstitutions in Armenia, of which theowner, Armen Jegijan, is a native. Itbecame evident that the method ofmanufacturing single crystals of sapphirefor highly efficient lasers can also be usedfor the manufacture of single-crystalsilicon, of much cheaper materials thanneeded when the ordinary methods areused. This research is being transferred tothe Czech Republic with significantsupport of the Centre of BiologicalTechnologies. A factory which will usethe technology is being built in the ČeskéVelenice – Gmünd Industrial Park. Thanksto this co-operation, the Institute ofPhysical Biology found lecturers ofbranches such as f i rm-phasethermodynamics and inorganiccrystallography.

Triana Sci&Tech s.r.l.The products of this Hi-Tech Spanishcompany are used by academic andindustrial research facilities of the world,and serve experiments in orbital stations.Its founder, Professor Garcia Reina, hasbeen a visiting professor of the Universityof South Bohemia since 2003, but his co-operation with the Centre of BiologicalTechnologies dates from 2001. Theprotein crystallography laboratory,headed by Ms Ivana Kuta Smatanová,developed some of the technologiesmanufactured by Triana Sci&Tech, andtested several others. Proteins whichoriginated from this development fly toouter space. Co-operation with TrianaSci&Tech has won the Centre ofBiological Technologies reference at theNational Institute of Health USA. ■

S U R V E Y

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Poll of Successful Companies Operating in theChemical and Pharmaceutical Industry Sector

Lovochemie, a.s.

Terezínská 57, 410 17 Lovosice, phone: +420 416 561 111, fax: + 420 416 533 098, e-mail: [email protected],www.lovochemie.cz

Turnover: EUR 133 millionNumber of employees: 626Contact person: Ms Irena Vodičkováe-mail: [email protected]: Approximately 50%, mainly to West Europe, LatinAmerica

Lovochemie, a.s., is the largest manufacturer of industrialfertilisers in the Czech Republic and its production programme hasgreatly contributed to the development of Czech agriculture.Lovochemie is a member of the Agrofert group. At present, itschief operations are the manufacture and sale of nitric andcombined fertilisers in both solid and liquid form. Products ingreatest demand include different types of saltpetre, ammoniumsulphate, and special fertilisers. In organic chemistry, the companypresents itself with the product LOVOSA (carboxymethylcellulose), which is used in the food, textile, and other industries.

How does your company co-operate with foreigncountries?The company sells its products on the domestic and foreignmarkets. Approximately one-half of its output is exported mainlyto the West European countries, Germany in particular. A specialrange of products goes to more distant destinations such as LatinAmerica, where products of the calcium nitrate type are sought.

How does your company invest into itsdevelopment? What do you expect of thisinvestment?The largest recent investment – into the manufacture of nitricacid, the so-called KD6, was completed in 2003, but Lovochemiecontinues investing into projects focussed on the modernisation ofproduction all of which have an ecologic character – the costs ofenvironmental protection, and health safety and protectionamounted to EUR 6 million in 2007 alone. The major projectsincluded the overhaul of electrical separators, repairs of cyclone

separators and sedimentation tanks of the waste-water treatmentplant, and the reconstruction of the limestone crushing andgrinding plants to reduce their dustiness, noisiness, and energyconsumption.

The company is now increasing its research. The development ofnew products ranks among Lovochemie priorities.

Reference must be made of an organic fuel manufacturing plantwith an annual capacity of 400 000 tonnes of rape, which is underconstruction in the Lovochemie complex for PREOL, a company ofthe Agrofert Group, and is due to be completed in the spring of2009. This investment, too, is designed to reduce the impact ofhuman activity on the environment.

IVAX Pharmaceuticals s.r.o.

Ostravská 29, 747 70 Opava-Komárov, phone: +420 553 642 111, fax: +420 553 642 150, e-mail: [email protected],www.ivax-cz.com

Number of employees: 834Contact person: Karin Martínkováe-mail: [email protected]: more than 80% - including to Russia, Germany,Slovakia, the United Kingdom, the USA, Poland, the Ukraine,Mexico, the Netherlands, Japan, Switzerland, and SaudiArabia

IVAX Pharmaceuticals s.r.o., based in Opava-Komárov, memberof the TEVA Group, is a major manufacturer of pharmaceuticalproducts. Its history opened in 1883. Its broad range ofproducts includes generic curative preparations – mainlyant iasthmatics, cyc lostat ics , immunosuppress ives,hypolipidemics, and antihypertensives – in the form of tablets,capsules, and liquids (sterile and non-sterile), and over-the-

Fertiliser pellets

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counter (OTC) drugs, active pharmaceutical ingredients (API),and plant extracts.

The products meet quality standards and are exported to manycountries of the world, including the USA and West Europe. Thecompany became a part of the TEVA multinational group in2006.

Your company joined the TEVA multinational grouptwo years ago. What does this mean to you?TEVA ranks among the twenty largest pharmaceutical firms ofthe world and is its largest manufacturer of genericpreparations. It sells its products through carefully selected andefficient subsidiaries in 115 countries. In Israel, North America,Europe, and Latin America it owns 43 plants manufacturingpharmaceutical preparations and 14 more plants producingactive pharmaceutical ingredients (API). TEVA also owns 34research and development centres round the globe (8 of thesefor API research and development). Last year, ten of thepharmaceutical plants were earmarked for strategicdevelopment to carry out TEVA’S ambitious plans. IVAXPharmaceuticals is proud to belong to this group.

Can you specify what you mean by strategicdevelopment?In keeping with a decision made in the late 2007, the Opavamanufacturing plant will be expanded with a new unit to turnout 4 billion tablets and hard gelatine capsules every year. Theconstruction, which will cost an estimated EUR 40 million,commenced early in August. The unit will be built in two stages,

the first one is due to be completed at the end of 2009 and gointo operation in the first half of 2010. The second stage isplanned for 2011. The production capacity of our company willthus be doubled and IVAX Pharmaceuticals will be one of thelargest pharmaceutical producers in Europe.

CHEMOTEX Děčín a.s.

Tovární 63, 407 11 Děčín 32 - Boletice nad Labem, phone: +420 412 709 216, fax: +420 412 709 232, e-mail: [email protected], www.chemotex.cz

Number of employees: 65Contact person: Mr Tomáš Urbáneke-mail: [email protected]: Germany, France, Austria, Poland, Hungary, Slovakia,Russia, the Ukraine, Kazakhstan

CHEMOTEX Děčín a. s. manufactures chemical auxiliaryindustrial products. At present, its main products are tenzidsand detergents, and chemicals for the engineering,construction, textile, and paper industries. Its offer includesmore than 200 types of products.

How do you co-operate with foreign countries?Our company has a long tradition in co-operation withcountries of the former Soviet Union, on which several presentdeals and negotiations are based.

Which of your products is most popular abroad?Most popular are specialties on which CHEMOTEX has beenfocused in the recent period. These include especiallysulphocarbolic acid – a specialty manufactured in manyqualities. Also worth mentioning is ALTHOSAN MB –a corrosion inhibitor used in the petroleum industry, which ispopular, due to the manner of use, particularly on the easternmarkets.

Factory of the IVAX company

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I N F O R M AT I O N

Important Contacts

MinistriesMinistry of Health of the Czech Republic* www.mzcr.cz [email protected] of Industry and Trade of the Czech Republic www.mpo.cz [email protected] of the Environment of the Czech Republic www.env.cz [email protected]

Associations and SocietiesAssociation of Chemical Industry of the Czech Republic www.schp.cz [email protected] Chemical Society www.csch.cz [email protected] Society of Chemical Engineering www.cschi.cz [email protected] Association of Pharmaceutical Companies www.aff.cz [email protected] Pharmaceutical Society www.cfs-cls.cz [email protected]

InstitutionsState Veterinary Administration of the Czech Republic www.svscr.cz [email protected] Institute for Drug Control www.sukl.cz [email protected] Institute for Nuclear, Chemical, and Biological Protection www.sujchbo.cz [email protected]

UniversitiesInstitute of Chemical Technology Prague www.vscht.cz [email protected] of Veterinary and Pharmaceutical Sciences Brno www.vfu.cz [email protected] University PragueFaculty of Pharmacy Hradec Králové www.faf.cuni.cz [email protected]

InstitutesPolymer Institute Brno, spol. s r. o. www.polymer.cz [email protected] Institute of Organic Syntheses www.vuos.cz [email protected] Centre for Environmental Chemistry and Ecotoxicology (RECETOX) www.recetox.muni.cz [email protected] s.r.o. - Centre for Pharmacology and Analysis www.cepha.cz [email protected], Research Institute of Biopharmacy and Veterinary Drugs www.bri.cz [email protected] Institute of Chemical Process Fundamentals www.icpf.cas.cz [email protected] of Analytical Chemistry www.iach.cz/uiach [email protected]. Heyrovský Institute of Physical Chemistry www.jh-inst.cas.cz [email protected] of Inorganic Chemistry www.iic.cas.cz [email protected] of Organic Chemistry and Biochemistry www.uochb.cas.cz [email protected] of Macromolecular Chemistry www.imc.cas.cz [email protected] of Experimental Medicine www.iem.cas.cz/ [email protected]

Exhibitions and Fairs in the Chemical andPharmaceutical Industry Sector in the Czech Republic

PRAGOMEDICA31st international medical fair21-24 April 2009, Praha-Holešovice Exhibition GroundsINCHEBA PRAHA spol. s r.o., e-mail: [email protected],www.incheba.cz/pragomedica

PERMEA 2009Membrane science and technology conference of Visegradcountries7-11 June 2009, Pyramida Hotel, Praha 6–Břevnove-mail: [email protected], www.imc.cas.cz/sympo/permea09

16th EUROPEAN SYMPOSIUM ON ORGANICCHEMISTRYScientific symposium12-17 July 2009, Municipal House, Prahae-mail: [email protected], www.esoc2009.com

Medical Fair BrnoInternational fair of medical equipment, rehabilitation, and health20-23 October 2009, Exhibition Center Brno Veletrhy Brno, a.s., e-mail: [email protected],www.bvv.cz/medicalfair

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