The demand for analytical services remained as high as usual, with sales almost reaching the same level as last year. Solvias demonstrated how various technologies could be efficiently and successfully combined in this field in a major project completed for IDM Pharma. The project gained particular attention at this year’s CPHI, where it received the European Outsourcing Award for “Best Analytical Outsourcing Project”. During this project, Solvias provided the entire analytical development for MEPACT, which has now been approved in Europe for the treatment of non-metastasized, operable osteosarcoma.

Sales in the fields of synthesis and catalysis showed a slight decrease in 2009. This was mainly caused by the difficult financial situation experienced by customers in the biotechnology industry. In specialty areas, the analysis technology market for our fiberoptic probes has fallen sharply throughout the world. Most of the chemical production companies were not at full capacity in 2009, and most went without making new investments, an external factor that had a particularly important effect here.

In spite of a clear weakening of the world’s economic climate, we were able to hold our position in the home market of Switzerland. Our good relations with our customers and our strong anchoring in the regional market have paid off here. Nevertheless, we recorded important sales declines in regions that were hit more heavily than Switzerland by the economic crisis, such as in North America, England and Germany.

GMP production for clinical studies – successful launch despite adverse market environment
Among our new offers, we were able to successfully launch the production of active pharmaceutical ingredients in accordance with GMP (Good Manufacturing Practice). The new facilities were installed as planned and were released by Swissmedic in August for the production of GMP-compliant active pharmaceutical ingredients until clinical phase II. Despite the generally felt, cautious tendency for outsourcing, we were able to acquire new customers, and the new offer was also met with enthusiasm by existing customers. One major factor for the success is the close connection between chemical and analytical development, which enables us to supply materials for the use in phase II clinical studies in a rapid and cost-effective way.

Solvias holds its ground in the market
By our estimates no significant relief can be expected in the market conditions in 2010; however, CEO Hansjörg Walther is convinced that Solvias will be able to hold its ground in the market: “We were able to consistently record successful growth over the past few years, and we are well established in the market as an integrated pharmaceutical service provider for analytical and chemical development. We want to use this position to further increase our competitive advantage in this field, thereby creating a basis for long-term growth.”

The new building for laboratories and offices in Kaiseraugust also highlights these plans for the future. The building should be completed on time and on budget in 2010,. The move is scheduled for the end of the fourth quarter of 2010.

We intend to counteract declining sales with rigorous cost management and intensive market cultivation. If necessary, we may also continue the short-time working that was introduced in two of our departments. Any open positions will be filled with careful consideration or perhaps even filled internally.

As an unlisted company, Solvias does not publish revenue figures.