Siegfried To Acquire Novartis’ Drug-Product Mfg Sites in SpainBy
Siegfried, a CDMO of active pharmaceutical ingredients and drug products, has signed binding agreements with Novartis to acquire two Novartis’ drug-product manufacturing sites in Spain.
One site, in El Masnou, specializes in the manufacturing of ophthalmic steriles and complements Siegfried’s existing capacity and services for ophthalmology products and sterile filling at its sites in Irvine, California and Hameln, Germany. The second site, in Barberà del Vallès, manufactures oral solid dosage forms (OSD) and capsules used in inhalation devices. The site in Barberà del Vallès adds to Siegfried’s existing OSD capabilities in Malta by adding large-scale capacity and services to manufacture highly potent drug products and adds to its portfolio with inhalation products. The two sites in Spain combined have approximately 1,000 employees.
The two Novartis sites are currently captive manufacturing sites, and beginning in 2021, Siegfried says it plans to transform the sites for CDMO services. This transformation will include a review with regard to operational efficiency as well as plans to invest into development capacity and capabilities with the aim to create a center of excellence for the sites’ current technology portfolio in the Barcelona region.
As part of the transaction, Novartis and Siegfried have entered into various agreements covering cooperation during the carve-out and post-merger integration phase and for providing multi-year purchase commitments for the manufacturing and supply of Novartis products. Siegfried will become as a preferred supplier with Novartis procuring products from both sites.
Subject to customary closing conditions and the necessary regulatory approvals, the transaction is expected to close at the end of 2020.