Hospira Acquires Orchid's API Manufacturing and R&D Facilities - Pharmaceutical Technology

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Hospira Acquires Orchid's API Manufacturing and R&D Facilities



Hospira reported it has completed the acquisition of an API manufacturing facility and an associated R&D facility from Orchid Chemicals & Pharmaceuticals, an Indian pharmaceuticals company, for approximately $218 million, after settling prior advances of approximately $30 million.

The acquisition enables Hospira to vertically integrate into the beta-lactam antibiotic APIs (penems and penicillins) and is also expected to improve Hospira's cost position in this therapeutic space. In addition, backward integration into these beta-lactam APIs will improve the company's security of supply.

The API manufacturing facility, located in Aurangabad, India has capabilities for manufacturing sterile APIs and employs approximately 665 employees including chemists, engineers, and technicians. The associated R&D facility is based in Chennai, India, and will be directed primarily to beta-lactam and other API developments with approximately 110 scientific personnel.

Post deal, Orchid retains its cephalosporin API business and facilities and certain non-antibiotic, non-sterile businesses, and facilities it owns. Orchid will continue to supply Hospira with cephalosporin APIs.

Source: Hospira

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