Akorn to enter India in five facility takeover deal
Inking the five plant, $52m (€39m) deal moves Akorn beyond its US base and gives it 230,000 sq ft of manufacturing space in India.
“We are excited about this acquisition as it expands both our capacities and capabilities for sterile injectables. Strategically, we will also establish a global footprint giving us access to the fast growing emerging markets”, Raj Rai, CEO of Akorn, said.
Akorn is buying some of the assets from Kilitch Drugs and some from NBZ Pharma. Currently only two of the plants are working but construction of the other three is expected to be complete in 2012.
The operational plants manufacture general injectables and cephalosporins in several dosage forms. An expansion to add capacity and ophthalmic capabilities is underway at the plant making general injectables. Akorn has made two deals to expand its ophthalmic pipeline and portfolio this year.
When the other three plants open Akorn will have capacity for carbapenems, hormonal and oncology related injectables. The plants will manufacture liquid, dry powder, lyophilised and prefilled syringe dosage forms in sterile conditions.
The business case
Certain products and contract manufacturing business will be transferred to Akorn as part of the deal. Akorn will use the plants to expand in India and other ex-US markets, as well as boosting business in its home territory.
“With this platform we plan to offer a speed to market, high quality, comprehensive and cost effective solution to our domestic customers specifically for critical care products in categories such as anti-infectives and cancer that are consistently in short supply”, Rai said.
US-based Akorn has plants in Decatur, Illinois and Somerset, New Jersey from which it produces its own drugs and offers contract manufacturing services. The sites employ about 300 people.
Akorn is working to gain local regulatory approvals and expects to close the deal in the next 90 days.
