CMO Olon Buys API Manufacturing Plant in India
Olon S.p.A., an Italy-headquartered contract development and manufacturing organization of active pharmaceutical ingredients (APIs) and a generics supplier, has acquired a local generics chemical operations API manufacturing facility in Mahad, India as part of a continuing expansion of its global footprint.
The Mahad site, which supplies products to Sandoz, the generics arm of Novartis, is an API manufacturing facility that supplies product globally. As part of the asset-purchase agreement, the parties have committed to sign a long-term supply contract to guarantee continuous supply of Sandoz products manufactured in Mahad. Olon intends to invest in the site and pursue further opportunities to optimize the plant’s use and expand its customer base. The acquisition of the Mahad API manufacturing facility is expected to be completed in early 2019, following a transition process. No financial details were disclosed.
Olon has been making moves in recent years to build its API operations. Olon acquired Ricerca Biosciences’ Chemical Division in 2017 and invested more than EUR 10 million ($11.6 million) to expand API manufacturing lines in its Settimo Torinese, Italy facility, a plant used for development and production of APIs and advanced intermediates through microbial fermentation technology. In 2016, the company acquired INFA Group, an API and fine chemicals manufacturer headquartered in Milan, Italy. With the INFA acquisition, Olon gained two manufacturing sites in Italy (Labochim and Sifavitor) and one in Spain (Derivados QuÃmicos). The move supported Olon’s position in providing generic APIs by more than doubling Olon’s generic-drug portfolio to more than 200 products and also supported its position in contract development and manufacturing services.
The company said it will now proceed with its next strategic goal—to add biomanufacturing capabilities. “To accomplish all the objectives listed in the Olon three–years’ development plan, we will move to the next target: to play an important role in the manufacturing of biologics API’s,” said Paolo Tubertini, Chief Executive Officer of Olon, in September 3, 2018 company statement.
Source: Olon S.p.A