TAU-CHEM Ltd. 20 YEARS OF CUSTOM SYNTHESIS & SPECIALITY CHEMICAL MANUFACTURE 1994-2014 EXECUTIVE SUMMARY • TAU-CHEM Ltd. is one of the Slovak’s leading manufacturers of Fine Chemicals that find applications in broad spectrum of the market sectors. Currently the company works on expanding its facilities and launching new streams of business. Therefore it seeks to raise capital to invest into these opportunities and to replace its short-term financing. • The company was founded in 1994 by partners with extensive experience in organic synthesis and technology. With a team of highly skilled organic chemists, including 5 PhDs, Tau-Chem specializes in the heterocyclic chemistry as well as in the more conventional fields of organic synthesis. Fully equipped quality control laboratories ensure that the manufacture complies at all stages with the highest quality standards. Within its existence the company acquired number of business partners as well as a distinguished position on the market. Database of more than 20 000 compounds with the complete literature research, the product catalogue containing 400 compounds accomplished with the technology documentation prove the sound functionality and abilities of the company . • In early 2008 the company owners and managers started to pursue a new strategic plan to expand the reactor capacity, improve the working environment, and to implement ecologically suitable solutions to the complex waste liquidation; while continually increasing the quality of services to customers, introducing modern technologies including continuous flow reactions and chiral synthesis. FACILITIES 1995 – 2005 • Since 1995, TAU-CHEM has rented premises within industrial complex of Istrochem, a.s. •The complex was established at the end of 19th century by Alfred Nobel group, and Alfred Nobel personally supervised the rise up. During the 1970s, about 8,000 were employed within the complex in a large chemical company. • 2015 TAU-CHEM assets consist of two main buildings: Ground floor building (production and development building).Three floors Blue building (research, quality control, administration and management) and a number of ancillary premises- stores and garages. • Currently the complex serves as an industrial park with a number of small companies 3 TAU-CHEM has acquired significant fixed assets equipped with top technology and thereby significantly contribute to performance improvement. Dynamit Nobel AG. Bratislava 1920 HISTORY OF THE COMPANY • 1994 • 1995 • 1998 • 2001 • 2003 • 2004 • 2005 • 2007 • 2008 • 2009 • 2011 • 2011 • 2014 • Established by four university schoolfellows: Dr. Marian Ježek, Dipl. Ing. Juraj Ďuris, Dr. Jan Hrabovsky, and Dr. Vladimir Žvak • Start of production in November, 1995 • Acquisition of analytical laboratory GC/MS and HPLC • Start of a pilot plant • Revenues over EUR 1 million • Successful chiral synthesis such as HKR and Sharpless epoxidation • New buildings acquired, cooperation with Fytofarm Ltd. • Close cooperation with company Axxence Aromatic GmbH. fragrances and the flavors development • ISO 14001 • Reasearch projects (Slovak Research and Development Agency • Dr. Cernak new shareholder (40%), Dr. Zvak (30%), Dr Hrabovsky(30%) • ISO 14001, recertification • ISO 9001, certification November 1995 start up manufacturing 3 employees, 1 laboratory • Epoxides • Furans and benzofurans • Imidazoles • Pyridines • Thiophenes • Other heterocycles • Aromatics • Various • Chiral compounds 2015 Development Development research and fine chemicals producing company. Specializes in organic synthesis. Competency in process development and scale up. BUSINESS MODEL Catalogue Firms • Literature research • Experiments • Production • Building of internal know-how Production of fine chemicals based on accumulated know-how or new research Examples: (Intermediaries reselling chemical compounds) • Active pharmaceutical ingredient for early stage of drug discovery • Pheromones • Food additives • Nano-particles • Research chemicals End-users • Pharmaceutical companies • Food industry • Producers of perfumes • Agricultural • Crop protection • University research centers • Others TAU-CHEM´s business model is based on transferring academic scale chemistry (mg) to production quantities (kg) process optimization and transfer to full production (tones). 8 COMPETITIVE ADVANTAGE • Large codified know-how readily applicable by a strong team with combined more than 100 years of experience • Flexibility and ability to identify profitable products in demand and to produce wide range of products form few milligrams up to hundreds of kilograms (products in early phase of their life cycle: after discovery and description in the literature, however before mass production) • Long operational experience resulting in high revenues per person i.e., ability of PhDs to lead complex synthesis “managing less experienced” synthetics using codified knowledge (database of products) • High quality manufacturing, ISO 9001 • Attractive economics with high gross margins • Established player on the market with credibility with main global catalogue firms such as Acros, TCI, Alpha Aesar, Aldrich ,and with some of the most important end-users such as Novartis, Merck, Arena Pharmaceutical, etc. Established relationship with agents in China, Japan, South Korea. • TAU-CHEM is very well positioned on an attractive niche market of early life cycle of organic chemical compounds (1s mg – 100s kg). • It can exploit this position exceptionally well due to its accumulated knowledge and operational experience. Equipment Production equipment Analytical equipment • Synthetic laboratory: Various glass reactors with laboratory equipments for the synthesis up to 1 kg • Kilo lab: 25 lt up to 100 lt glass reactor, 20 lt rotovap Heidolph • Pilot plant: 250 lt inox reactor, 300 l glass lined, • Distillation unit: 100 lt inox, 100 lt and 50 lt glass with Sultzer column • Hydrogenation units: 2 lt Buchi, 100 lt Jahndorf • GC/MC- Varian 450GC, Varian 225-MS • HPLC-Varian 9010, Diode array detector, Ultimate 3000 (fy Dionex) • GC Brucker 450GC, • Titration unit: Titrino plus (Metrohm) • M.p.: open air capilary device Stuart SMP 30 • KF: Titrino plus KF (Metrohm) • Refractory index RESEARCH & DEVELOPMENT , 2009-2011 4 projects approved and financed by the Slovak Grant Agency APVV Cooperation: 42 companies (CDA ) Slovak Technical University, Slovak Academy of Science Axxence Slovakia Ltd. Saneca, a.s. 2009: 2013: Certificate for R&D (Ministry of Education SK ) 3 projects proposed, 1aprooved (“Chiral epoxides, simple synthons for enantiopure molecules“). 2014: Horizon 2020: member of consortium in 1project APVV: 2 projects proposed member of the Cluster „Omic4Health“ 2015: RESEARCH & DEVELOPMENT TARGET Horizon 2020 TAU-CHEM offer: • custom synthesis and contract manufacturing services from grams to a hundred kilos scale. TAU-CHEM is looking for: • partners from research area, developed new ideas, promising synthetic approaches, new catalytic systems etc.