#ChemCoach Carnival: From Big Pharma to Non-Profit
Oct25

#ChemCoach Carnival: From Big Pharma to Non-Profit

We're almost at the end of National Chemistry week, folks, and the Haystack is finally kicking in to blogger SeeArrOh's now rampant #ChemCoach carnival. The goal of any carnival is to get a lot of different bloggers to post on the same topic--in this case, to write about how they got to where they are today as a way of educating young chemists on their career options. Round-ups of the dozens of posts this week can be found here, here, and here. Since the science writing field has been well covered here and by our own Carmen Drahl, and because the Haystack is focused on all things pharma, I thought I'd enlist the help of someone with a much more illustrious career than my own. Without further ado, I give you some words of career wisdom from TB Alliance's chemistry guru Christopher Cooper: Your current job.   I’m Senior Director of Chemistry at the Global Alliance for TB Drug Development (TB Alliance), a non-profit, product development partnership headquartered in New York City.  My job encompasses all chemistry activities for the Alliance from early-, mid-, and late-stage drug discovery right through drug substance/API manufacturing for clinical trials.  The TB Alliance is dedicated to identifying safe, novel chemical entities for the rapid treatment of tuberculosis worldwide, and my job is to oversee the Alliance’s chemistry needs to achieve our goals (seewww.tballiance.org for more details). What you do in a standard "work day."   Define “standard” … oh, and define “work day,” as well, please? All kidding aside, working for a small (~45 employees), entrepreneurial, research and development organization means that every day is truly different, whether it’s engaged in project team discussions with collaborators in Chicago and Belgium, or proposing new analogues/chemical series to pursue with chemists in Auckland or Seoul!  In fact, as we engage chemists (medicinal, process, manufacturing) on TB Alliance projects around the globe, my work “day” doesn’t really begin or end.  After all, if it’s 9:00 P.M. on the East Coast, it’s already 9:00 A.M. in Beijing!  Fortunately, the virtual nature of our business model translates into my own flexibility in addressing issues wherever and whenever they occur … and I don’t have to wash my glassware anymore (yey!). What kind of schooling / training / experience helped you get there?   In many ways, my background would appear fairly conventional, despite the more unconventional nature of my current position.  I received my B.S. from Clemson University in 1980, and my M.S. (1982) and Ph.D.’s (1988) from Stanford.  Having worked briefly in the pharmaceutical industry (CIBA-Geigy from 1982-1984), I was eager to return so I accepted a position...

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A123 Systems Files Chapter 11, Johnson Controls to Buy Assets
Oct16

A123 Systems Files Chapter 11, Johnson Controls to Buy Assets

It looks like it's pretty much all over for A123 Systems. The advanced battery company announced today that it would file for Chapter 11 bankruptcy in order to reorganize its debts. Johnson Controls, which also makes large-format lithium ion batteries for the auto industry, will purchase facilities and other assets for $125 million. A123 was earlier mulling an offer to sell itself to Chinese auto part maker Wanxiang Group. A123 was one of a host of battery, battery materials, and electric drivetrain companies to receive government money as part of the Recovery Act. The goal was to set up a full manufacturing supply chain to for U.S.-made advanced batteries. Those batteries were intended to go into U.S.-made electric vehicles. A123 received $249 million in government grants. It also has shareholders, who will likely lose their investment in the re-org. Overall, Recovery Act funding for the advanced battery industry totalled $2 billion. A123 Systems stood out - and was most vulnerable to market forces - because it was a tech-driven, pure-play battery company. Unlike Dow Kokam, or Johnson Controls, it has no deep pocketed parent or additional technologies and markets to sell into. (A123 will license back techology for batteries used for stationary storage). And the market A123 sells into is the hyper-oversupplied market for electric car batteries. As we've mentioned recently in this blog, electric cars are selling very, very slowly. A recent article in MIT's Technology Review says battery production capacity in 2013 will greatly outpace demand with 3,900 MW hours of capacity to serve 330 MW of demand, based on estimates from Menahem Anderman at the consulting firm Advanced Automotive Batteries. Needless to say, many production lines are sitting idle at the moment. When A123 was still a young firm, it was selling batteries for power tools to Black & Decker. Indeed, when it went public its S1 filing was based on that partnership. The company certainly had its sights set on what was to be a huge automotive market. But one has to wonder, what would have happened if A123 hadn't received the "free" money? What if it hadn't been swept into the government's big plans to create a new advanced manufacturing industry from...

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BMS Cuts R&D Jobs
Aug01

BMS Cuts R&D Jobs

The ax is falling on more pharma R&D jobs. Earlier today, Derek Lowe brought word from readers that research jobs were being cut at Bristol-Myers Squibb. The company just confirmed that "fewer than 100" positions were being eliminated in the U.S. Here's the official word from BMS: "Bristol-Myers Squibb is strategically evolving the company’s Research focus to ensure the delivery of a sustainable, innovative drug pipeline in areas of serious unmet medical need and potential commercial growth. The Company is aligning and building internal capabilities to support the evolution of its Research focus. In doing so, certain research areas will be streamlined and there will be investment and growth in other areas. This strategic evolution has resulted in job eliminations in the short term to allow longer term investment. This initiative will result in a reduction in employee headcount of fewer than 100 people in an R&D organization of more than 7,000 employees. Impacted employees were notified on August 1, 2012 and transitions will take place within two weeks of this date." The company will not confirm whether they are, as Derek's sources suggest, in the metabolic disease area or limited to New Jersey. If indeed they are all coming out of its N.J. labs, today's announcement will add to challenging times for the state.  As we wrote last month after Roche announced plans to shutter its Nutley site, costing some 1,000 jobs, the number of drug industry jobs in N.J. fell by 22.4% between 2007 to 2010, according to a report by Battelle and the Biotechnology Industry...

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Making Markets for Bio-based Fuels and Chemicals
Mar12

Making Markets for Bio-based Fuels and Chemicals

Minnesota has long been the heart of ethanol fuel consumption. With plenty of corn and corn ethanol facilites - and a lot of drivers in E85 vehicles - the state was an early and enthusiastic supporter of bio-based fuel. But times have caught up with the northern-Midwesterners. Now a new ethanol facility, owned by Gevo and being renovated to make isobutanol from corn, has run into an obstacle in state legislation that prevents the company from selling the alcohol to in-state fuel blenders. According to the Star Tribune, the state's laws only specify that ethanol can be blended with gasoline (at 10% biofuel). Gevo’s Lucerne, Minn. isobutanol plant will have to ship out of state to access the fuel market. Currently the site is being renovated to switch from making corn-based ethanol to isobutanol. Though the goal is to sell into the higher-margin chemicals market, fuels are usually a key destination to make the capacity/revenue equations work out. There’s still time to get that settled, though. Gevo won’t be in commercial production until June, and the state can update the regulation to include other bio-based fuels. The Star Tribune points out that the President of the state’s ethanol trade group, Minnesota Bio-Fuels Association, is also CEO of Highwater Ethanol, which is also considering making isobutanol. Highwater says it is in discussions with Butamax, a joint venture of BP and DuPont and competitor to Gevo. The two firms are been engaged in a major patent dispute. With Gevo poised to be the first in Minnesota to make isobutanol, I’m sure the firm would like to see the law changed sooner, rather than later. Meanwhile, back in Washington, there are efforts to greatly expand the products that carry the USDA BioPreferred label. The program is a labeling/economic development/domestic bio-based materials promotion vehicle. President Obama gave it a boost last week when he signed a presidential memo requiring government agency purchasers to increase the amount of BioPreferred products they purchase. He also asked USDA to double the number of categories and products that are designated BioPreferred over the next 12 months. In the Senate, Debbie Stabenow (D-Mich.) has introduced the Grow It Here, Make It Here Bio-based Manufacturing Act which would further invigorate the effort. I’ve been seeing a great deal of support Senator Stabenow’s bill in my in-box, from groups who expect to benefit from a higher profile for bio-based materials. DuPont, Novozymes, and the Biotechnology Industry Association trade group have publicized their support. From a DuPont press release this morning: “The President’s action and the Grow It Here Make It Here bill demonstrate that the administration and policymakers understand the value...

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Tough Times for Thin Film Solar Makers
Mar05

Tough Times for Thin Film Solar Makers

Two U.S. manufacturers of thin film solar cells based on cadmium telluride have been having a tough couple of weeks. Tempe, Arizona-based First Solar put out a sobering fourth quarter earnings report. While sales were up a bit from last year's quarter - to almost $2.8 billion, the firm reported a net loss of almost $40 million, compared to net income of $664 million for the fourth quarter of 2010. First Solar used the last quarter of the year to take a big goodwill impairment charge of $393 million - residue of acquisitions of OptiSolar and NextLight. Without the goodwill charge and some restructuring charges, the quarter still brought in less profits than the previous year's quarter. Going forward, the company cut its 2012 guidance on net sales to $3.5 billion-$3.8 billion from $3.7 billion-$4 billion. First Solar stayed firm on an earnings forecast of $3.75-$4.25 per share. But other issues are haunting First Solar - the company's filing with the SEC says that it is spending more than expected on warrantee replacements of solar panels deployed in hot climates. And it has a new head of investor relations after an internal investigation of company leaders who may have improperly disclosed that First Solar would not receive a DOE loan guarantee for a large utility solar installation due to not making a deadline for application. Its SEC filing said that the SEC was now investigating the issue (the loan news negatively affected First Solar's stock price). Meanwhile, Abound Solar, which makes  solar cells similar to First Solar, but is a smaller firm, recently said it would lay off 180 workers in Colorado. It plans to shift manufacturing to a more efficient production line, and says the workforce action is temporary. House Republicans have already been asking DOE why the company received a $400 million DOE loan guarantee for its manufacturing operations in Indiana. First Solar and Abound Solar will go on, in spite of these hiccups. But they will continue to struggle to compete against traditional crystalline silicon solar cells because the latter have gone down in price by close to 40% in the last year. Thin film modules are well liked - First Solar is doing well with utility scale projects. But the firms have to move very quickly to increase efficiencies while decreasing production costs. To do so, they will have to stop work on older production lines - and they may have to do so abruptly or they will lose money on each module they...

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AstraZeneca to Shed 2,200 R&D Jobs
Feb02

AstraZeneca to Shed 2,200 R&D Jobs

AstraZeneca wielded a heavy ax to its workforce today as it prepares for tougher times ahead. The British-Swedish drugmaker is chopping 7,300 jobs, including 2,200 R&D positions, in hopes of achieving $1.6 billion in annual cost savings by 2014. This is the third round of major cutbacks at AstraZeneca. In 2010, the company announced plans to slash 8,000 jobs over four years, a move that added to the elimination of 15,000 jobs between 2007 and 2009. This specific round girds against an onslaught of generic competition for key products and accounts for several disappointments in the company's late-stage pipeline. In the coming months, the company will lose patent protection in various markets for the anti-psychotic Seroquel IR, the anti-cholesterol drug Crestor, and the blood thinner Atacand. Meanwhile, AstraZeneca’s late-stage pipeline has faltered. The recent setbacks (adding to earlier ones) include ending development of the PARP inhibitor olaparib, which prompted it to take a $285 million charge; a failed Phase III trial for the antidepressant TC-5214; and a thumbs down from FDA last month for dapagliflozin, a Type II diabetes drug being developed with Bristol-Myers Squibb. R&D has taken a heavy hit in each round of cuts. During the Q&A session following AstraZeneca’s earnings presentation, one analyst said his back of the envelope calculations suggest the company will have shed 7,600 R&D jobs between 2006 and 2014. Based on comments by AstraZeneca’s R&D chief Martin Mackay, small molecule research has born the brunt of those cuts. He noted that headcount in biologics research has grown, and pointed out that biologics now account for 40% of the company’s early-stage pipeline (candidates in studies earlier than Phase II), up from 15-20% in recent years. The latest R&D revamp will be primarily focused on AstraZeneca’s neuroscience activities, where the risk of investment is seen as particularly high. “It’s a really tough area,” Mackay said.  “The industry hasn’t produced enough and we haven’t produced enough.” The challenge was highlighted in November, when TC-5214, an anti-depressant being developed by Targacept and AstraZeneca, failed to show benefit in a Phase III trial. The bad news came as a surprise, as TC-5214 had demonstrated strong efficacy in smaller trials. Three other Phase III trials are underway, but analysts are skeptical that the program can be salvaged. “Prospects appear grim,” Leerink Swann analyst Joshua Schimmer said in a note last month. AstraZeneca is creating a small team of 40 to 50 scientists that will work with external partners in academia and industry to discover and develop neuroscience drugs. The adoption of this new strategy means that the company’s Montreal R&D facility will be shuttered, and it will end R&D at its Södertälje site in Sweden....

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