Mayne starts work on contracting plant and relocates distribution ops

By Gareth Macdonald

- Last updated on GMT

Mayne Pharma starts work on North Carolina expansion
Mayne Pharma starts work on North Carolina expansion

Related tags North carolina Contract manufacturing Pharmacology

Mayne Pharma has started adding contract manufacturing capacity at its site in North Carolina in an project that will also see it consolidate US distribution operations.

The Australian firm said it would spend $65m (€58m) on a new facility at its site in Greenville in August, explaining that the plan is to increase oral solid dose capacity in line with market demand.

Construction is now underway according to Mayne, which said this week that the site will house solvent-based, fluid-bed processing techs that mirror those at its facility in Salisbury, Australia.

It added that the facility will both be used to make its own brand products – include doxycycline, morphine sulphate and erythromycin – and available to customers of its contract manufacturing services business.

Mayne said it will also repurpose the existing plant at the Greenville site, expanding its analytical laboratory and oral drug formulation development centre.

The expansion is being supported by a $550,000 performance-based grant from the North Carolina Fund and tax incentives worth up to $2.7m.

Mayne predicts that the expansion will create 110 jobs when completed in 2018.

Distribution consolidation

Mayne said it will also consolidate all US distribution operations at the site.

The firm gained the North Carolina facility in 2012 when it acquired contract manufacturing organisation (CMO) Metrics Contract Services to boost its presence in the US oral formulation sector.

That deal included a wholesale distribution business – Midlothian Laboratories – that Metrics bought in 2011​.

A Mayne spokseman told us: "We have relocated the former Midlothian Labs warehouse operation from Alabama to Greenville​" adding that "many of the employees of that facility relocated with Mayne Pharma to NC in the process​."

Prior to the expansion,  Midlothian shipped niche drugs to pharmaceutical wholesalers, chain drug stores and retail merchandisers across the US from a 23,000 square foot distribution warehouse in Montgomery, Alabama.

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