Siegfried buoyant as controlled substances lift 1H sales
pharmafile | August 28, 2013 | News story | Manufacturing and Production |Â Â 1h, AMP, SiegfriedÂ
Pharmaceutical raw materials manufacturer Siegfried posted a 10% increase in sales to 197 million Swiss francs in the first half of the year thanks to strong orders for controlled substances.
The numbers were also enhanced by last year’s acquisition of sterile filling specialist Alliance Medical Products (AMP), which advanced Siegfried’s contract manufacturing operations, while operating earnings rose more than 70% to 16 million francs thanks to ‘strict capacity and cost management’, according to chief executive Rudolf Hanko.
Sales of drug substances were up 3% to 135 million francs in the first half, while sales of finished drug products leaped ahead 26% to 62 million francs.
“Siegfried’s considerable sales growth is a result of the company’s favourable product mix based on broad technological and methodological capabilities,” said Hanko.
Siegfried has been adding to its technology base with equipment for high-potency compounds at its main manufacturing site in Zofingen, spray dry investments at Pennsville in the US and an additional blister packaging line at its facility in Malta.
It has also been given planning permission for a new production facility at Zofingen, while a recent push into China remains on track, with groundbreaking at a new active pharmaceutical ingredient facility in Nantong near Shanghai taking place last month.
The plant in Nantong is following exactly the same design as Zofingen and will allow Siegfried to in-source raw materials that are currently being purchased externally, providing an opportunity for cost-savings.
It will also take over production of lower-margin products currently made at Zofingen and Pennsville, noted Hanko. Meanwhile, the new unit at Zofingen will replace several older plants that are no longer cost effective to run.
It is being set up with an investment of around 460 million yuan ($75m) and is expected to start supplying materials in the middle of 2014, employing some 300 workers. Siegfried’s current headcount stands at around 885 full-time positions.
Phil Taylor
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