Narrowing the Geographic Divide in API Sourcing - Pharmaceutical Technology

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Narrowing the Geographic Divide in API Sourcing
Contract manufacturers deploy a business model using operations in the US and Western Europe with facilities in Asia.


Pharmaceutical Technology
Volume 33, Issue 3, pp. 80-86

To build its contract manufacturing, Dr. Reddy's Laboratories (Hyderabad, India), one of India's largest pharmaceutical companies, completed two key acquisitions in 2008: Dow Chemical's (Midland, MI) Dowpharma small-molecules business associated with its Mirfield and Cambridge, England, sites, as well as BASF's (Ludwigshafen, Germany) manufacturing facility in Shreveport, Louisiana, and related contract-manufacturing business for finished pharmaceuticals. Dr. Reddy's started building its custom manufacturing business in the West in 2005 with the acquisition of a former Roche API manufacturing facility in Cuernavaca, Mexico.

Dishman Group (Ahmedabad, India), which acquired several Western firms over the past several years, is expanding. Dishman bought the Swiss-based CMO Carbogen Amcis and I03S, a company specializing in ozone chemistry, in 2006, and the UK-based contract-research company Synprotec in 2005. In 2007, Dishman acquired Solvay Pharmaceuticals' (Brussels) fine-chemicals and vitamin businesses, which included facilities in The Netherlands, and the intellectual property rights for fine chemicals, vitamin D, and vitamin D analogues.


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Dishman announced capital investments of more than $33 million: $20 million in the current financial year and $13 million planned for fiscal year 2009, which begins in April. Investments include the addition of a high-potency facility near Dishman's headquarters in Bavla, India, and a new plant in Shanghai. The plant in Bavla will be managed and operated by the Dishman subsidiary Carbogen Amcis, and is scheduled to be operational in mid-2009. The facility in Shanghai will include a production plant, a warehouse, dedicated on-site utilities, and administrative and quality-control offices. Construction is underway and is expected to be fully staffed and operational by the second quarter of 2009.

CiVentiChem (Carey, NC), which was founded by scientists from Duke University as Universal Organics in the mid-1990s, provides contract R&D services to pharmaceutical and biotechnology companies. It formed an Indian subsidiary, Indus BioSciences, approximately six years ago in Hyderabad to provide research and development (R&D) services for those customers interested in having R&D done in India. CiVentiChem recently expanded its capabilities in Cary, North Carolina, with the launch of a GMP analytical laboratory to provide analytical services, and is building a pilot plant with 20,000-L capacity in Hyderabad to manufacture large-volume intermediates and APIs.

Jubilant Organosys (Noida, Uttar Pradesh, India), made two key acquisitions to build its contract secondary manufacturing activities: Hollister-Stier in 2007, which provided the company with US operations, and Draxis in 2008, which provided Canadian manufacturing facilities.


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