CMOs Make Select Investments in Primary and Secondary Manufacturing - Pharmaceutical Technology

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CMOs Make Select Investments in Primary and Secondary Manufacturing
Contract manufacturers and pharmaceutical ingredient suppliers proceed with select investments in biologics manufacturing, small-molecule synthesis, and formulation as the industry prepares for CPhI Worldwide in Milan.

Pharmaceutical Technology

Lonza also is building a commercial-scale plant with supporting development and analytical laboratories in Visp for producing antibody drug conjugates. The plant will initially be capable of producing over 100 kg of antibody drug conjugates per year, and future expansion plans are built into the design. Stage I is expected to be on line in 2008. Lonza now operates laboratory-scale production and will bring small-scale pilot facilities on stream in 2007.

Investments in China. Like other CMOs, Lonza is building its position in Asia. The company completed a small-scale manufacturing plant for APIs in Nansha, China. The plant was scheduled to go on stream in August. In addition, the company is constructing a new large-scale API facility in China. Production is expected to begin in the second half of 2008.

Cambrex regroups

Cambrex (East Rutherford, NJ) shifted its portfolio earlier this year, with the key move being the divestiture of its bioproducts and microbial biopharmaceutical business to Lonza for $460 million. It also sold its small-molecule API manufacturing facilities in Cork, Ireland, and Landen, Belgium, to International Chemical Investors S.A. With those moves, Cambrex now operates small-molecule research and manufacturing facilities in Charles City, Iowa; Karlskoga, Sweden; Milan, Italy, and North Brunswick, New Jersey.

In July, Cambrex began construction of a mid-sized CGMP manufacturing facility for small-molecule APIs and intermediates in Karlskoga. The plant is scheduled for completion by early 2009.

The company is also building new laboratory space to augment its existing high-potency development facilities at its site in Charles City, Iowa. The project includes the construction of an 11,500-ft2-facility with five new process development/kilo laboratory production suites for high-potency APIs and enhanced facilities for analytical development and quality control activities. The facility is scheduled to be completed by early 2008.

Saltigo expands in Germany

Saltigo GmbH (Langfeld, Germany) is investing EUR 30 million ($40.4 million) to modernize manufacturing facilities in Leverkusen and Dormagen, Germany. Saltigo also is investing EUR 10 million ($13.5 million) to convert an existing plant in Leverkusen into a multipurpose CGMP facility for manufacturing APIs and intermediates. The facility will include four modular units with total capacity of more than 200 metric tons.

Aptuit positions in India

As competition from Asian CMOs intensifies, Western-based CMOs are responding by enhancing their positions abroad.

A case in point is Aptuit Inc. (Greenwich, CT). In June, Aptuit and Laurus Labs Limited (Hyderabad, India) formed a new contract-drug development company, Aptuit Laurus (Hyderabad). Aptuit Laurus will consist of a 160,000-ft2 research and development facility in Hyderabad, a large-scale manufacturing plant that it is currently under construction in Pharma City, Vishakhapatnam, and Aptuit's existing informatics development and support group in Bangalore.

Aptuit has further committed to invest approximately $100 million during the next four years to build upon Aptuit Laurus's development, manufacturing, and informatics capabilities.

Aptuit has been actively building its contract drug-development portfolio. Recent acquisitions include SSCI, a solid-form research firm, and EaglePicher Pharmaceutical Services, which provides small-molecule synthesis capabilities, including high-potency actives.

SAFC makes bolt-on acquisitions

SAFC (St. Louis, MO) made several moves in 2007. It acquired Molecular Medicine BioServices Inc. (MMB, Carlsbad, CA), a biopharmaceutical contract manufacturing organization, to further enhance the biologics capabilities within its SAFC Pharma business segment. MMB's core expertise is in the development and clinical manufacturing of viral products.


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