Enzymes for industrial use
Novozymes launched six new enzyme products in 2006, including solutions for the detergent and bioethanol industries. The number and quality of research projects under development remain high, which bodes well for the company continuing to launch five to seven new products a year.
Bioethanol was a focus area in 2006, not only in the media but also politically. Sales of enzymes to the bioethanol industry made a significant contribution to Novozymes’ sales growth in 2006. Demand for enzymes for this type of fuel is expected to continue to make this business area particularly interesting for Novozymes in the future.
Also in the bioethanol field, Novozymes entered into two alliances in 2006 focusing on the future technology where bioethanol is expected to be produced from cellulosic material, also known as biomass. In June the company concluded a cooperation agreement with the Chinese company China Resources Alcohol Corporation covering research into technologies for using cellulosic biomass to produce bioethanol, and in October Novozymes extended its existing partnership with US company Broin to include the development of commercially viable bioethanol from biomass.
Asia is growing in importance for Novozymes. Over the last three years, sales there have grown by an average of 10% a year. Rising standards of living in a number of countries and growing interest in the environment spell good opportunities for continued sales growth.
Continued productivity improvements were one important reason why Novozymes was able to deliver growth in operating profit of 11% in 2006 despite rising raw material and energy prices and increasing investment in long-term growth. Among other things, productivity improvements were helped by the launch of two new bioethanol products.
Microorganisms for industrial use
The microorganisms business put in a satisfactory performance in 2006. It continued its geographical diversification, and what was once a primarily North American business generated more than 30% of its sales outside North America in 2006.
Several new products were launched during the year, including Novo BioClean, a microorganism for institutional and household carpet-cleaning agents.
In September 2006 Novozymes acquired a pest control technology for the microorganisms business. This technology supplements the company’s existing activities in microorganisms.
Biopolymers and recombinant ingredients for the biopharmaceutical industry
At the beginning of 2006 Novozymes acquired the shares of Qingdao Huayuan Fine Bio-Products Company Ltd, a small Chinese producer of hyaluronic acid. This gave Novozymes access to a dedicated manufacturing facility for the production of biopolymers. The acquisition also supplemented the existing product portfolio.
With a view to becoming a leading supplier of recombinant ingredients to the biopharmaceutical industry, Novozymes also focused on recombinant ingredients for cell cultures in 2006. Cell culture ingredients are used in the production of certain biopharmaceutical products. In 2006 Novozymes acquired two companies working mainly in this area. The acquisition of Delta Biotechnology Ltd in the UK and GroPep Ltd in Australia has given Novozymes extensive know-how in recombinant ingredients and a commercial platform, supplementing Novozymes’ own research project in recombinant human serum albumin for cell cultures. Following the acquisition of these two companies, Novozymes expects to be able in the future to offer a platform of non-animal ingredients spanning the three main ingredients for cell cultures in the production of biopharmaceutical products.
The development of plectasin is proceeding to plan. Plectasin is an antimicrobial peptide and a potential new antibiotic. Preliminary research results suggest that it can combat multi-resistant bacterial infections. The project is now in the preclinical testing phase, and Novozymes is working actively on finding the right partner to handle the bulk of the remaining development process and potential commercialisation of the product.
