Johnson Matthey acquires API capacity in Scotland

By Zachary Brennan

- Last updated on GMT

Related tags Johnson matthey Active ingredient

Johnson Matthey acquires API capacity in Scotland
Johnson Matthey has completed its acquisition of API and pharmaceutical intermediate manufacturing capacity in Scotland. 

The 109,000 sq. metre site in Annan was acquired to meet increasing demand for custom pharmaceutical services and active pharmaceutical ingredients (API).

Johnson Matthey is planning a “multimillion-pound​” refurbishment of the site, which will update and enhance the operational and quality standards of the facility. Refurbishment is set to start in early 2015, and the site is expected to be fully operational by early 2016.

A Johnson Matthey spokesman told us "For the types of API, I would say that Johnson Matthey is often known for its controlled substances APIs in Europe, but this site will allow us to expand our offering to a broader range of active ingredient, both in the generics space and also contract manufacturing of bespoke active ingredients and intermediates.

"In particular this will be enabled through utilising Johnson Matthey’s unique and extensive catalyst and chiral technologies and our chemical process capabilities," ​he added.

The added capacity for API manufacturing comes as this part of Johnson Matthey’s business has struggled in recent months. API sales fell 5%​ last quarter. 

But the company may see a benefit from the acquisition of Sigma-Aldrich by Merck KGaA​ as John Fowler, division director for the fine chemicals business, told investors last month that he's "quietly optimistic​" that "Merck is kind of distracting Sigma with vertical integration​."

This strategic site addition significantly increases our global manufacturing capabilities and capacity​,” said John Fowler, Division Director at Johnson Matthey Fine Chemicals. “Combining the Annan site with our leading technologies will answer our customers’ needs for efficient production of pharmaceutical intermediates and APIs at the highest quality and compliance standards in the market.​”

The site offers manufacturing capacity to optimise efficiencies across the company’s existing global manufacturing assets.

Glaxo originally constructed the site in 1980. Located in Annan, Dumfries and Galloway, the site was most recently owned by Bakhu Pharma. 

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