Hospira Acquires Indian API Facility

By PhM Staff

Jul 07, 2014

Injectable drug and infusion technology provider Hospira announced on Independence Day it completed its acquisition of Orchid Chemicals & Pharmaceuticals Ltd.’s active pharmaceutical ingredient (API) manufacturing and R&D facility for approximately $218 million.

Hospira’s new manufacturing facility -- which is located in Aurangabad, India -- employs approximately 665 chemists, engineers and technicians. Hospira's purchase also includes an associated R&D facility with 110 employees based in Chennai, India that, according to Hospira, will be directed primarily to beta-lactam and other API development.

"Hospira's acquisition … will support supply continuity of key beta-lactam antibiotic products, improve our cost position and pave the way for future API development," says Dr. C. Bhaktavatsala Rao, president and managing director, Hospira India. "We're committed to the antibiotics space … [and] we will continue to bring high-quality, lower-cost products to patients around the world."

The acquisition says Hospira, enables the company to “vertically integrate into the beta-lactam antibiotic APIs (penems and penicillins), and is also expected to improve Hospira's cost position in this therapeutic space.” In addition, says the company, backward integration into beta-lactam APIs will help secure the supply of Beta-lactam antibiotics which represent a class of wide-spectrum antibacterial drugs. Post deal, Orchid retains its cephalosporin API business and facilities, and also certain non-antibiotic, non-sterile businesses and facilities it owns. Orchid will continue to supply Hospira with cephalosporin APIs.