Astellas Transfers US Manufacturing Subsidiary to CMO

Astellas Pharma Inc. reports that Astellas’ US holding company, Astellas US Holding, Inc., has transferred its wholly owned manufacturing subsidiary, Astellas Pharma Technologies, Inc., (APT), based in Norman, Oklahoma, to Avara Norman Pharmaceutical Services, Inc., a contract manufacturing organization, headquartered in Norwalk, Connecticut. Astellas Pharma Technologies, Inc. will be renamed Avara Pharmaceutical Technologies, Inc.

APT owns the plant used for the formulation and packaging of certain Astellas pharmaceutical products, which has now been transferred to Avara. APT employees will remain employed at the site, and the plant will continue to manufacture certain Astellas products on a contract basis. Astellas expects to continue to source a stable supply of products from the facility under the oversight of Avara.

The 29,000-square meter facility is on a 810,000 square-meter site. As of June 2016, API employed 200 people.

“We sincerely thank the Astellas Pharma Technologies employees in Norman for their dedication over many years of service. In addition, I am very grateful for the way they have kept our operation running smoothly through the last months of uncertainty as we searched for the right buyer — and we wish them the best as they transition to Avara,” said Mitsunori Matsuda, president of echnology at Astellas, in a company statement. “We have confidence that Avara is the right company to oversee the continuing supply of the Astellas products that are made at the facility, as well as the fulfillment of capacity use at and capabilities of the facility. We look forward to working with Avara as the new owner of the facility to ensure the continuous supply of our products for the patients who need them.”

In line with the transfer of APT, Astellas expects approximately JPY 9.0 billion ($88.4 million) of one-time expenses, including impairment loss of plant and equipment, among others, for the second quarter ending September 30, 2016.

Avara Pharmaceutical Services is a privately owned division of the American Industrial Acquisition Corporation group of companies. Avara provides bulk drug formulation and manufacturing, along with primary and secondary packaging capabilities for solid dose drugs. Its manufacturing technologies include granulation, coating, blending, encapsulation, compression, and drying of tablets and capsules.

Source: Astellas Pharma

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