Higher demand for methadone, buprenorphine and opiates coupled with the positive impact of a recent acquisition drove first half growth at Swiss supplier Siegfried.
Zofingen-based Siegfried saw net profits increased 41% to CHF18.5m ($20m) in the six months to June 30 with revenues climbing 10% to CHF196.7m.
In addition to higher demand for controlled substances, Siegfried said its acquisition of sterile filling contractor Alliance Medical Products (AMP) last June had also had a positive impact.
This was confirmed by spokesman Peter Gehler told Outsourcing-pharma.com that: “The turnover of AMP is around 5% of the total turnover,” and added that AMP’s core business is sterile filling and the production of complex medical devices.
In addition, Siegfried reported that an order for its exclusive synthesis business the also boosted ingredient sales and that its finished dosage form business also saw growth, with revenue climbing nearly 28 % to CHF62m.
The Swiss firm also said recent expansion of its manufacturing and pilot plant in Pennsville, New Jersey, US – where it increased warehouse capacity – and at its production facility in Malta – where it makes tablets and capsules - had worked as part of a strategy designed to increase profitability.
“Targeted investment in capacity expansion was made in Pennsville, New Jersey, and Malta. Headcount increased to 885 full-time positions. Projects aimed at further stepping up sales and profitability are progressing to schedule.”
Seigfried also predicted that a facility it is building in Nantong, China would help drive its business. Gehler told us that: “In Nantong, we will produce early intermediates and intermediates, but we will be able to produce APIs as well.”
Siegfried was similarly optimistic about the effect the in-progress revamp of its manufacturing plant in Zolfingen will have on its bottom line and facilitate greater interaction between its Asian and European businesses.
The firm said that: “The new building will replace several older plants at the Zofingen site which no longer comply with efficiency requirements and generate high maintenance.
“The two plants in Nantong and Zofingen are based on an identical technical concept in order to facilitate product transfers from a regulatory and technical perspective.”
Siegfried held its earning call earlier this morning and was not available for comment at the time of publication.