New Boss, New HQ  — BASF Pharma Ingredients and Services has seen a few significant changes over the past year. The company has relocated its headquarters to New Jersey, and a new senior VP has taken over the reins — Scott Thomson. Thomson told Brandi Schuster that the last 12 months have been an exciting time for the company, with two major acquisitions in the area of high-concentrate omega-3 acids as well as the company's move from the mountains of Switzerland to the Garden State.

CHEManager Europe: It's almost been a year since you took over the role of senior vice president in charge of BASF's Pharma Ingredients & Services business unit. How would you sum up the first 12 months?
Scott Thomson: In one word, exciting! We have entered into the dynamic business field of high concentrate omega-3 with the acquisitions of Pronova and Equateq. These acquisitions complement our API and dietary supplement offering with a comprehensive high purity omega fatty acid product portfolio. Additionally, we have entered into further cooperations to provide comprehensive needs-based solutions to our customers. Good examples of that are our cooperations Bend Research and Catalent in the field of API solubilization, one of the central issues of the pharmaceutical industry. Moreover we strengthened our custom synthesis business through strategic partnerships with key customers.

What do you see as the biggest challenges facing the pharma market today?
Scott Thomson: The pharmaceutical industry is in a time of significant transition that creates both challenges and opportunities for our customers and BASF.  Cost pressure and increasing market volatility caused by strong out- and insourcing of services are direct results from changing health care systems and the large number of medical products that come off patent. Additionally the industry is operating in an ever increasing regulatory environment that is varied across the globe.  I feel BASF is well positioned to help our customers successfully navigate this transition, whether it be improving their total cost or solving some formulation challenges, like solubilization of poorly water-soluble APIs.

Parallel to you becoming SVP, the global headquarters of BASF's Pharma Ingredients & Services business unit was also moved from Switzerland to the U.S. What are the advantages of having U.S. headquarters rather than in Europe?
Scott Thomson: The North American market has been - and still is - the one of most important regional pharmaceutical markets. It is a key center of innovation and the trendsetter in this industry. Our new headquarters in Florham Park, New Jersey, are located in the epicenter of the U.S. pharmaceutical industry, where many global players are based with worldwide activities. Moving to the New Jersey area has brought us closer our customers and partners, who are an important part of our growth strategy. North America is also one of the largest dietary supplement markets, which becomes increasingly important for our customers and for BASF as growth opportunity.

How has this strategic move changed business?
Scott Thomson: Absolutely! We are close to many key decision makers, key partners and interesting new market opportunities like for instance the growing omega-3 activities. Nevertheless, the pharmaceutical business remains a global one and our international footprint ensures that we serve customers wherever they are located.

With the acquisitions of Equateq in May 2012 and Pronova at the beginning of this year, BASF has taken over a leading position in the area of omega-3 fatty acids. BASF is also working with Cargill to extract omega-3 fatty acids from new types of rape seed. What roles do these acids play in APIs?
Scott Thomson: Highly concentrated omega-3 fatty acids (EPA/DHA > 90%) are used today as APIs in pharmaceutical products to treat cardiovascular diseases such as myocardial infarction and hyperlipidemia/hypertriglyceridemia. However a great deal of research is indicating that other highly concentrated omega-3 products have additional potential health benefits, e.g. brain health, which could  open an even larger markets in the future.

What are your expectations for these acids?
Scott Thomson: Highly concentrated omega-3 fatty acids are a global growing market both for nutritional and pharmaceutical applications. Growing consumer awareness of scientific proven omega-3 health benefits is fueling double-digit growth in this field.

What trends are coming up with omega-3 fatty acids?
Scott Thomson: Further increasing demand for high and highest concentrated omega-3 products, driven by newly found health benefits and therefore extending their use and benefits to more patients and consumers.  

How does BASF stack up against the competition in this arena, particularly against DSM and Croda?
Scott Thomson: With our recent acquisitions, BASF now offers the full range of omega-3 fatty acids with EPA/DHA concentrations up to 99%. BASF has a leading position in production capacities, technologies and scientific and application expertise.  This enables us to serve a growing market that is increasingly diversifying into specific ratios of long chain omega-3 fatty acids for various health indications. Our proprietary assets allow flexible blending/formulation of omega-3 fatty acids at exceptional purity levels. This makes BASF uniquely suited to meet our customers' current and future needs in the market.

Visit BASF at the CPhI 2013 in Frankfurt Oct. 22-24 in hall 3.1, booth E19.