Hospira acquires manufacturing, R & D facilities in India

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Hospira acquires manufacturing, R & D facilities in India

Generics/News | Posted 21/09/2012 0 Post your comment

On 29 August 2012, US-based Hospira announced an agreement to acquire an API (active pharmaceutical ingredient) manufacturing facility, together with an associated research and development (R & D) facility, from Orchid Chemicals & Pharmaceuticals. The modern, FDA-approved facility is costing approximately US$200 million. Acquisition of this leading Indian pharmaceuticals company is expected to reduce Hospira’s costs, support continuity of supply of key antibiotic products and pave the way for future API development [1].

‘Our decision to acquire Orchid’s world-class API facility demonstrates Hospira’s continued dedication to the antibiotics space, enhancing cost-competitiveness and ensuring continuity of supply,’ said Dr C Bhaktavatsala Rao, Managing Director, Hospira India. ‘This is a top-of-the-line API manufacturing facility that has been recognised by industry leaders for its high standards.’

The acquisition follows Hospira’s 2010 purchase of Orchid’s generics injectable finished-dosage form pharmaceuticals business, continuing Hospira’s integration into critical beta-lactam antibiotic APIs (penems and penicillins). Hospira expects to reduce costs in this therapeutic area by sourcing some APIs from India. In addition, controlling the source of these beta-lactam APIs will improve the company's security of supply. Orchid will retain its cephalosporin API business and facilities, and will continue to supply Hospira with this associated API.

Award-winning facility
The Aurangabad, India, facility, staffed by approximately 640 employees including chemists, engineers and technicians, received the International Society of Pharmaceutical Engineering's Facility of the Year Award for Regional Excellence in 2009. Constructed in 2000, the facility extends to 50,000 square meters. Hospira’s purchase also includes an associated Orchid R & D facility based in Chennai, India, that will be primarily directed to beta-lactam and other APIs with approximately 160 scientific personnel and an additional 30 employees supporting the facilities.

Hospira is a provider of injectable drugs and infusion technologies. Beta-lactam antibiotics represent a class of drugs with a wide spectrum of antibacterial activity. Hospira’s imipenem-cilastatin and meropenem injectable beta-lactams have both had successful introductions recently in a number of markets, including Europe and the US, and today command leading market positions.

This takeover is part of the present trend towards the establishment of global sourcing and sales in the generic pharmaceuticals industry.

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Source: Hospira