AMRI Wraps Acquisition of Indian Manufacturing Plants

PharmaManufacturing.com
07/02/2007

On May 21, 2007 AMRI announced the signing of a definitive agreement to acquire from the Runwal Group the assets of Ariane Orgachem Pvt. Ltd. in Aurangabad and Ferico Laboratories Ltd. in Navi Mumbai. The existing facilities currently manufacture a range of pharmaceutical intermediates and bulk active ingredients, including treatments for diabetes, heart disease and asthma.

AMRI also has obtained additional land in Aurangabad and plans to invest approximately U.S. $15 million to expand and upgrade manufacturing capabilities over the next three years. In addition to expansion and improvement of intermediates and active pharmaceutical ingredient (API) manufacturing capabilities, investments will include upgrades to existing environmental and safety systems and procedures, improvements to waste water treatment facilities, and other enhancements to ensure the preservation of local environmental resources. Plans also include the retention and on-the-job training of approximately 200 employees, and the creation of additional skilled employment opportunities in support of AMRI's expansion plan, further contributing to the local economy.

Concurrently, AMRI announced that Prasad S. Raje, Ph.D. has assumed leadership responsibility for AMRI's manufacturing business in India, and has transferred from Syracuse, New York to company offices in Mumbai. Dr. Raje will report to Jonathan Evans, AMRI vice president for Pharmaceutical Development and Manufacturing.

Born in Mumbai and educated in Ahmedabad, Dr. Raje joined AMRI in 2002 in the company's chemical development department. After positions at Mount Prospect and Albany, Dr. Raje ultimately led all technical and commercial operations at the company's Syracuse Research Center.

Prior to joining AMRI, Dr. Raje was a senior research scientist at Abbott Laboratories, near Chicago. He earned a B.S. and M.S. in chemistry at Gujarat University in India, then received a Ph.D. in organic chemistry at Auburn University in the United States. He conducted postdoctoral research at Auburn University, as well as at the Research Triangle Institute in North Carolina.

"We are pleased to complete the acquisition of these manufacturing sites in Aurangabad and Navi Mumbai," said AMRI chairman, president and chief executive officer Thomas E. D'Ambra, Ph.D. "These assets contribute to the globalization of our contract services platform from laboratory scale to manufacturing. In addition to our plan to make investments to improve the operations and grow the existing business already conducted from these facilities, we look forward to short term synergies resulting from leveraging our supply chain by preparing in India starting materials and intermediates for projects conducted at our Rensselaer, New York manufacturing facility. Longer term, we anticipate expanding the line of generic API's prepared in India that we can market throughout the world, providing additional synergies with our existing Hyderabad, India development laboratories and creating global custom manufacturing opportunities for AMRI's extensive client base."

"We are pleased that Dr. Raje has accepted this important position as we further globalize our custom manufacturing and contract services platform," said Jonathan Evans. "Dr. Raje is uniquely suited to lead our manufacturing operations in India. His successful leadership of our Syracuse operations demonstrated he has the technical and management strength to take on this important investment in AMRI's future. As a returnee to India, Dr. Raje brings his record of accomplishment and experience within AMRI's operations and culture to an important new part of our business. In addition to overseeing our manufacturing operations and planned expansion in Aurangabad, Dr. Raje will play an integral role in welcoming new employees to the AMRI team, working closely with customers and, most importantly, ensuring that AMRI is an important and growing member of the local community."