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White Biotechnology Strategies: Does Danisco's Takeover Open a Rush on Biotech Stocks by DuPont Competitors?

SpecialChem / JeanPierre Molitor – Apr 27, 2011

The recent announcement of DUPONT to acquire all outstanding stocks of the Danish company Danisco for a total transaction value of 6.3 billion $ ( including debts) might have surprised many observers owing the fact that the company had total sales of 2.6 billion $ in 2010. Commonly such stock values are seen in areas like pharmaceuticals, luxury or Dotcom businesses. So what motivates DuPont to spend this amount of money and should we expect a series of biotech related company takeovers in the near future similar to the once famous move to fine chemicals in the late 90’s that almost ruined companies like Rhodia, Clariant..? This time it’s clearly different, not that corporations will be more conscious in company valuation but because, with a few exceptions, the value creation has still to happen and opposite to the past biotechnology products innovations which happened in the 80’s and 90’s the direct competition with petrochemical sourced products and the change in production magnitude requires low cost raw materials, production, purification and a secured outlet before building any production site.

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