The acquisition will see Melboure, Australia TPI take possession of a Vistin’s facility in Kragero, Norway. The site has capacity to make active pharmaceutical ingredients (API) – including codeine phosphate and pholcodine – as well is finished dosage forms.
TPI said buying the assets was part of its strategy of bolting “downstream” production capability to its existing narcotic raw material business to increase its profits.
The firm also said it plans to build an API manufacturing facility in Portugal, but declined to provide further information when contacted by in-Pharmatechnologist.com.
According to reports in the Portuguese press TPI has signed contracts worth €13m with poppy growers in the country in recent years.
TPI has been working to diversify its revenue since 2014 when it announced its intention relocate its poppy straw processing operation in Cressy, Tasmania to a larger site on the Australian mainland.
Since then the firm has announced a number of major supply contracts. In August last year, it announced it had signed a deal worth $30m with an unnamed global pharmaceutical company.
In November TPI signed and manufacturing and supply deal with Sterling Pharma Solutions Ltd to manufacture and sell codeine phosphate in the UK.
Earlier this month TPI and Sterling signed a second supply contract. TPE said that both deals combined mean it will be supplying 20% of the 60 tonnes of codeine phosphate used in the UK each year.