Mylan buys Indian oncology plant for $33m
pharmafile | October 18, 2012 | News story | Manufacturing and Production |Â Â API, Mylan, SMSÂ
Indian contract research and manufacturing services (CRAMS) company SMS Pharmaceuticals has sold its manufacturing facility in Andhra Pradesh to US generic drugmaker Mylan Laboratories, in a deal valued at around $33 million.
Mylan has made no secret of its intentions to expand into the Indian pharmaceutical market of late, with chief executive Heather Bresch saying in June that the firm intended to launch direct commercial operations there later in the summer, focusing initially on its HIV franchise.
SMS’ Unit VI plant in Visakhapatnam (Vizag) on the southeast coast of India is involved in manufacturing active pharmaceutical ingredients (APIs) and formulations for cancer, according to SMS Pharma’s website.
The plant covers 40,500 sq. m. and can handle a number of different formulation types, including lyophilised preparations, liquid injections, tablets and capsules, and makes use of isolator barrier technology to enhance safety and prevent cross-contamination.
Mylan has said it intends to become a top 10 player in India’s $13 billion domestic drugs market, and increasing its local formulations manufacturing capacity to complement its existing API facilities in the country will be important in achieving that objective.
SMS describes the plant as ‘FDA-approvable’ and says it has been set up in accordance with current Good Manufacturing Practice (cGMP) guidelines. The company has seven manufacturing facilities and two R&D centres in its network, with two plants (in Hyderabad and Vijayanagarm) approved by the FDA.
SMS Pharma said the proceeds from the same would strengthen its existing facilities, cut the cost of its borrowing and reduce its overheads, as well as improving working capital.
The facility deal is the second acquisition by Mylan in India, and comes after it acquired a majority stake in API manufacturer Matrix Laboratories in 2006 for $736 million.
Matrix was renamed Mylan Laboratories Ltd last year as part Mylan’s efforts to launch its generic drug portfolio onto the Indian market.
Meanwhile, the generic firm has said it is also interested in opportunities in China and Brazil as it embarks on a phase of geographic expansion, and also plans to double its manufacturing capacity over the next four years.
Phil Taylor
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