Tracking the Expansion Activities of Contract Service Providers

A review of recent moves of CDMOs and CMOs
Aug 01, 2013


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The investment activity of CDMOs and CMOs reveals the broader business and technical trends of the pharmaceutical industry.

The author examines recent expansion activity. Some key areas of investment are technologies for bioavailability/solubilization enhancement, formulation and manufacture of high-potency drugs, and modified-release applications.

Contract service providers offering formulation-development, drug-delivery, and manufacturing services are an important part of the value chain for pharmaceutical companies. Recent expansion activity of CDMOs and CMOs reflect the business and technical trends in the pharmaceutical industry as a whole. Key areas of investment include capabilities to support bioavailability enhancement, modified-release applications, parenteral-drug manufacturing, and high-potency drugs.

Building the toolbox
Thus far in 2013, Catalent Pharma Solutions has made several moves to strengthen its position globally as well as to strengthen its toolbox. Earlier this year, the company formed two joint ventures in China, one for its softgel technologies business and one for its clinical-supply-solutions business. In softgels, Catalent agreed to acquire, pending regulatory approvals, a majority share in the Haining-based and privately held Zhejiang Jiang Yuan Tang Biotechnology, which produces nutritional softgel products for the Chinese and Asia Pacific markets. In a separate move, Catalent, and ShangPharma Corp., formed a new joint venture, which includes a new 31,000-ft2 facility in Shanghai. The facility, currently under construction, will offer capabilities in clinical-trial supplies, including comparator sourcing, primary and secondary packaging and labeling, storage, and distribution. The facility is scheduled to open later this year.

On an organizational basis, in July 2013, Catalent created a new business unit, Advanced Delivery Technologies, which aligns the company’s existing modified-release and

medication-delivery businesses. The company’s business units now include Catalent Softgel Technologies, Advanced Delivery Technologies, and Development and Clinical Services. Additionally, Catalent is investing $35 million to expand its controlled-release manufacturing facility in Winchester, Kentucky. The 100,000-ft2 facility is expanding by almost 80,000-ft2. Catalent expects the expansion to be completed by October 2014.

Earlier this year, Almac’s Clinical Services business unit expanded its services for dispensing and bottling solid dosage products with new enhanced containment equipment and processes at its EU and US headquarters, respectively in Craigavon, the United Kingdom and Souderton, Pennsylvania. Additionally, Almac is expanding its commercial-manufacturing capacity and recently added a new non-GMP drug formulation-development facility in Craigavon for a total investment of £13.7million ($21 million). The commercial expansion adds blending equipment and an automated packing and integrated cartoning line for high-volume bulk commercial manufacturing scheduled to begin in November 2013. Almac also launched US commercial packaging services following a successful FDA inspection and new client partnership for its facility in Audubon, Pennsylvania. The facility offers flexible packaging from primary packaging of solid oral dosage forms to customized secondary labeling and packaging of sterile biopharmaceutical products.

Metrics launched a new proprietary technology (SUBA) that enhances the bioavailability of poorly water-soluble drugs. The technology was successfully used by the parent company of Metrics, Mayne Pharma, which acquired Metrics in 2012. Mayne Pharma has applied SUBA technology to improve the bioavailability of the antifungal drug itraconazole. Metrics also introduced proprietary taste-masking technology, Cleantaste. The company also launched capabilities to produce nonsterile liquids, creams, and gels. The company’s cream suite can manufacture two- and three-phase suspensions and emulsions, including pastes, creams, lotions, and gels. Its two filling lines, which are modular and can be assembled according to product format, and its liquid-processing equipment can produce batch sizes ranging from 250 kg to 2000 kg. Metrics also introduced proprietary pellet technologies for controlled-release applications. Mayne Pharma has successfully applied the pellet technology to a number of proprietary pharmaceuticals with modified-release profiles, including Eryc (delayed-release erythromycin), Doryx (delayed-release doxycycline), Kadian (extended-release morphine), Astrix (delayed-release low-dose aspirin), and pulsed-release diltiazem.

The CDMO UPM Pharmaceuticals acquired a former Pfizer 500,000-ft2 commercial-manufacturing facility in Bristol, Tennessee. The acquisition provides UPM with large-scale commercial capabilities for manufacturing and packaging of solid oral dosage tablets and capsules as well as for semisolid manufacturing of creams and ointments. The facility further provides for technology-transfer support, pilot-plant scale-up capabilities, analytical and microbial testing, and dedicated suites for potent compounds. As part of the purchase, UPM will continue to manufacture Pfizer’s current portfolio of products within the facility for two years. Pfizer gained the facility with its acquisition of King Pharmaceuticals in 2012. King Pharmaceuticals was founded by UPM’s current Chairman and CEO John Gregory. In addition, in May 2013, UPM increased its capabilities for API-in-capsule dosage forms with the addition of a powder-microdosing system (Xcelodose, Capsugel). The company also added to its analytical capabilities with the addition of a differential scanning calorimeter and a thermogravimetric analyzer.