Draxis Resumes Production

September 15, 2005

ePT--the Electronic Newsletter of Pharmaceutical Technology

Draxis Resumes Production

Draxis Pharma, the pharmaceutical contract manufacturing division of Draxis Health Inc. (Mississauga, ON, Canada), has resumed manufacturing at its Montreal plant following an extended shutdown of its sterile and lyophilized product manufacturing areas this summer.

The four-week extension of the company's normal two- to three-week maintenance shutdown was announced on Aug. 26. The extra time was needed to replace major equipment, including an electrical panel and a pump assembly, and to perform "further cleaning and validation of the facility's sterile core," according to a company statement.

As a result of the shutdown, Draxis now expects 2005 consolidated revenues to range from US $80 to $84 million, instead of $88 to $92 million, as originally forecast. The revised estimate represents an increase of 15–21% over 2004 revenues.

The financial impact of the extended shutdown was partially mitigated by temporary layoffs of 97 employees working in the production and packaging of sterile and lyophilized products. The company expects to call back employees as affected operations are brought back up to full production.

Production of scheduled lyophilized products and ampul products has already begun; production of sterile topical products and products filled into vials was expected to resume this week. Production of the remaining sterile products will resume over the next two to three weeks, according to company statements.

Company officials could not be reached for comment.

–Laura Bush

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