Xellia Expands U.S. Production With Acquisition Of Manufacturing Plant From Hikma

COPENHAGEN--(BUSINESS WIRE)--Xellia Pharmaceuticals (‘Xellia’), a specialty pharmaceutical company focusing on providing important anti-infective treatments against serious and often life-threatening infections, has acquired manufacturing facilities in Bedford, Ohio from a wholly owned subsidiary of Hikma Pharmaceuticals PLC (‘Hikma’). Financial details are not disclosed.

Under the terms of the agreement, Xellia has acquired substantial parts of the site including several new manufacturing units for sterile injectables which are not currently operational. Hikma will retain the remaining facilities including the Quality and Development Center which has been operated by its subsidiary, West-Ward Injectables, Inc. since it acquired the site in 2014.

The site was previously owned by Ben Venue Laboratories, Inc. who ceased manufacturing in December 2013. Xellia plans to invest significantly in the facilities to resume manufacturing in the new units at the site and in the establishment and training of a new organization to operate the plant. The Company will work closely with the US Food and Drug Administration (FDA) to ensure a timely and controlled start-up at the facility.

Xellia plans to begin commercial production at the site within 24 months. The facility will operate alongside the Company’s existing sterile injectables production plant in Raleigh, North Carolina. The Bedford site significantly increases Xellia’s production capacity for sterile injectable products in the US, ability to meet the growing needs of its US customers and enables future pipeline expansion.

Commenting on the acquisition, Carl-Åke Carlsson, CEO, Xellia said:

“The US is a very important market for us, and as a region with a strong manufacturing heritage and a uniquely skilled and specialized workforce, Bedford, Ohio is an ideal location to expand our manufacturing capabilities. Together with our production site and new US headquarters in Raleigh, Xellia is in a great place to help make critical anti-infectives available to the patients that need them. We are looking forward to being co-located at the Bedford site with Hikma and to continue to work closely with them in the future.”

Xellia intends to recruit around 170 new employees across a range of departments including; manufacturing, supply chain, distribution, quality, engineering, human resources and finance at the Bedford site over an initial twenty-four month period.

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About Xellia

Xellia Pharmaceuticals is a specialty pharmaceutical company focused on providing important anti-infective treatments against serious and often life-threatening infections. With over 100 years of experience Xellia is a leading developer, manufacturer and trusted supplier of fermented and semi-synthetic Active Pharmaceutical Ingredients (APIs) and Injectable Finished Dosage Forms (FDFs) to the pharmaceutical industry. The Company has growing sales in more than 70 countries to over 500 customers across the healthcare industry. Headquartered in Copenhagen, Denmark, Xellia has global facilities including operational and manufacturing capabilities in Denmark, USA, Hungary and China, and currently employs over 1,000 people.

Xellia is a leading supplier of vancomycin and colistimethate sodium (CMS) which together combat life-threatening, multi-drug resistant bacterial infections across Gram-positive and Gram-negative species. Xellia is also developing novel antibiotics effective against MDR Gram-negative bacteria in a development project with SINTEF Materials and Chemistry (Trondheim) and the Statens Serum Institut (Copenhagen), supported by a grant from the Research Council of Norway.

Since July 2013, Xellia has been wholly owned by Novo A/S, the holding Company of the Novo Group.

Further information about Xellia can be found at: www.xellia.com.

About Hikma

Hikma Pharmaceuticals PLC is a fast growing multinational group focused on developing, manufacturing and marketing a broad range of both branded and non-branded generic and in-licensed products. Hikma operates through three businesses: “Injectables”, “Branded” and “Generics”, based principally in the United States, the Middle East and North Africa (“MENA”) and Europe. In 2014, Hikma achieved revenues of $1,489 million and profit attributable to shareholders of $299 million.

Further information about Hikma can be found at: www.hikma.com