New York's Saptalis Expands Production into New 28,000 Sq. Ft. Plant
August 8, 2017
By Mark Terry, BioSpace.com Breaking News Staff
Hauppauge, NY – Saptalis Pharmaceuticals announced it plans to open its first manufacturing facility in Hauppauge, NY.
The company was founded in 2015, and focuses on developing, manufacturing and commercializing specialty generic prescription and over-the-counter products. It currently runs a 10,000-square-foot research-and-development facility. In November 2016, it raised $6.5 million in equity financing.
The new facility will be 28,000 square feet and be located at 20 Davids Drive in Hauppauge. Polireddy Dondeti, the company’s chief executive officer and co-founder, told Newsday that the company will start by acquiring the rights to manufacture and sell drugs developed by other companies but that aren’t covered by patents. Once the company’s own products have been approved by the U.S. Food and Drug Administration (FDA), it will manufacture them as well.
“We want to build a good manufacturing company,” Dondeti said. “Our specialty is prescription products…. Our goal is to provide high-quality medicine at affordable prices.”
The Saptalis expansion plan is valued at around $2 million and was endorsed in July by the county’s Industrial Development Agency. The agency awarded the company $356,542 in tax breaks. This included an almost $285,000 break in property taxes, or 27.5 percent over 10 years. The company told the IDA board that without assistance, it would expand into Virginia or Florida.
Saptalis agreed to add 24 jobs by 2020. It currently employs 22 people. On average, the employees earn $60,665 per year, excluding health insurance and retirement benefits.
At this time, Saptalis isn’t generating revenue, although once the factory opens in January, Dondeti and co-founder Tantiana Akimova project annual revenue of $4.5 million in the first year and $78 million within five years.
The location of the new manufacturing plant is being acquired by investor Jeenarine Narine, who will lease it back to Saptalis. Narine has a 12.5 percent stake in Saptalis. The new facility is across the street from its headquarters and research-and-development laboratory.
The company’s founders were previously employed by Hi-Tech Pharmacal Co. Inc., which manufactured generic prescription nasal sprays. The company was acquired by Akorn in 2014 for $640 million. Akorn paid $43.50 per Hi-Tech share, a premium of 23.5 percent. That deal made Akorn the third-largest U.S. generic ophthalmic company.
Polireddy Dondet, Saptalis’ president and chief executive officer worked previously at Hi-Tech, as well as Pfizer , Barr Laboratories, and Morton Grove Pharmaceuticals. He received a Master of Science degree in Pharmaceutics and a PhD in Pharmaceutical Sciences from the University of Rhode Island.
Tatiana Akimova, Saptalis’ executive vice president, worked for Hi-Tech and Akorn. She received her PhD from St. Petersburg University and an MBA from Stony Brook University.