Xellia Pharmaceuticals buys former Ben Venue manufacturing plant from Hikma Pharmaceuticals

Xellia Pharmaceuticals, a speciality pharmaceutical company, has acquired manufacturing facilities in Bedford, Ohio, US from Hikma Pharmaceuticals.

The company said the transaction will significantly increase its production capacity for sterile injectable products in the US and enable it to meet the growing needs of its US customers while providing future pipeline expansion.

Financial details have not been disclosed.

Under the terms of the deal, Xellia has acquired substantial parts of the site including four new manufacturing units for sterile injectables which are not currently operational.

Hikma will retain the remaining facilities including a Quality and Development Centre which has been operated by its subsidiary, West-Ward Injectables, following its acquisition in September 2014.

Since acquiring the site, Hikma has transferred a large number of modern, high-quality machines, including lyophiisers and filling lines, to its manufacturing facilities in Portugal, Germany and the US.

The site was previously owned by Ben Venue Laboratories, which ceased manufacturing in December 2013.

Bedford is an ideal location to expand our manufacturing capabilities

Xellia said it plans to 'invest significantly in the facilities' to resume manufacturing in the new units at the site and to establish and train a new organisation to operate the plant. The company said it will work with the US Food and Drug Administration (FDA) 'to ensure a timely and controlled start-up at the facility'.

The company plans to begin commercial production at the site 'within 24 months'. The facility will operate alongside Xellia’s existing sterile injectables production plant in Raleigh, North Carolina.

Carl-Åke Carlsson, CEO of 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 specialised workforce, Bedford 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.'

Xellia intends to hire around 170 new employees across manufacturing, supply chain, distribution, quality, engineering, human resources and finance departments at the Bedford site over an initial two-year period.

Said Darwazah, Chairman and Chief Executive of Hikma, added: 'We are very pleased to see that Xellia plans to restart commercial operations at the Ben Venue site, which will create jobs and further support the Bedford community.'