Sector News

Fresenius moves forward with two U.S. expansions after killing Akorn deal

April 11, 2019
Life sciences

Fresenius Kabi missed an opportunity to quickly bulk up in sterile manufacturing when its $5 billion deal to buy Akorn imploded last year, but its organic expansion efforts in the U.S. are moving forward. One of those, which will add 450 jobs, has reached a milestone.

The German drugmaker last week held a so-called topping off ceremony, a traditional construction milestone, for a $100 million project in Wilson, North Carolina, the North Carolina Biotechnology Centers reports. The expansion, which promises to provide 445 jobs to the 100 it already has at the site, is slated to be completed in 2022. Fresenius makes prefilled syringes at the site, which it acquired from Becton Dickinson in 2017.

Fresenius announced the expansion in 2017, just months after it initially committed to buying U.S.-based sterile drug competitor Akorn. The Akorn deal would have significantly expanded its production, with two plants in the U.S. and one in India. That deal went south last year, however, after Fresenius uncovered quality manufacturing issues at Akorn that it said it was unaware of when it agreed to buy the sterile drug producer. After a trial, a judge said Fresenius was within in its rights to cancel the deal.

Fresenius also has an expansion project running concurrently at its sterile injectables manufacturing site in Melrose Park, Illinois, near its U.S. headquarters in Lake Zurich, Illinois. That $250 million, decade-long project includes new buildings for aseptic filling lines, expanded lyophilization capabilities and formulation areas, as well as a warehouse. There also will be an administration building, laboratories, office space and cafeteria space, all of it tied to the existing manufacturing site and intended as a showcase for customers.

Fresenius in February reported (PDF) 2018 revenues of €33.5 billion, up 6% in constant currency. Sales in North America, which make up about 40% of its business, were up 3%.

By Eric Palmer

Source: Fierce Pharma

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach