Hospira is buying an FDA-approved API manufacturing facility and associated R&D facility from Orchid Chemicals and Pharmaceuticals, for about $200 million. The proposed acquisition of the API facility in Aurangabad, India, and R&D site in Chennai, follows on from Hospira's purchase of Orchid's generic injectable finished-dosage form pharmaceuticals operation in 2010. The boards of both firms have approved the transaction.
Hospira’s primary business is in the field of injectable drugs and infusion technologies. The firm says acquiring the Orchid facilities will reduce costs, support antibiotic supply continuity particularly with respect to beta-lactam antibiotics APIs including penems and penicillins, and pave the way for future API development.
The 50,000 m2 Aurangabad facility houses 640 employees. The associated R&D facility in Chennai is the base for 160 scientific personnel. Hospira says R&D work will be directed towards the develpment of beta lactam antibiotics and other APIs.