Solutia Europe Agrees to Sell Pharmaceutical Services Business

On May 24, Solutia Inc. (St. Louis, MO, www.solutia.com)announced that its subsidiary, Solutia Europe SA/NV (SESA), reached a definitive agreement to sell its pharmaceutical servicesbusiness, which comprises CarboGen AG and AMCIS AG. Under the terms ofthe agreement, Dishman Pharmaceuticals and Chemicals Ltd. (Ahmedabad,India, www.dishmangroup.com)will purchase 100% of CarboGen and AMCIS stock and related assets for$74.5 million, subject to a working capital adjustment. Completion ofthe transaction is subject to the removal of the restrictions relatedto the sale under SESA's Euronotes, authorization by the bankruptcycourt overseeing Solutia's reorganization, and government andregulatory approvals, which are expected by Aug. 31. The transactionincludes the pharmaceutical services business's intellectual property,patents, trademarks, customer contracts, and employees.

CarboGen and AMCIS provide drug development and commercializationservices to pharmaceutical and biotechnology companies. The companies'2005 sales totaled approximately CHF 80 million ($65.4 million). Thepharmaceutical services business has research and developmentfacilities at three sites in Switzerland: Aarau, Bubendorf, andNeuland.

Dishman Pharmaceuticals and Chemicals manufactures activepharmaceutical ingredients and intermediates, quaternary compounds, andfine chemicals.