Chinese CDMO purchases former Novartis API facility

Zhejiang Jiuzhou Pharmaceutical has committed to guarantee continuous supply of products manufactured by the former owner, Suzhou Novartis Pharmaceutical Technology

China-based Zhejiang Jiuzhou Pharmaceutical has entered into a contractual commitment for the purchase of Suzhou Novartis Pharmaceutical Technology (SNPT), an API manufacturing facility in Changshu Economic Technology Development Zone, Suzhou, China.

Zhejiang is a CDMO for APIs. Madam Lirong Hua, Chairman of the Board of Jiuzhou Pharmaceutical, said: "By acquiring this manufacturing site in Suzhou, Jiuzhou Pharmaceutical can accelerate growth by adding new CDMO projects and develop new products for the market. It comes with an excellent manufacturing facility and a dedicated team of experts that will support us in delivering high-quality pharmaceuticals meeting or exceeding customer expectations and regulatory requirements."

The site

The SNPT site, is an established and reputable API manufacturing facility and provides a number of lifesaving medicines to patients around the world.

On 2 November 2009, Novartis officially opened its new global technical centre Suzhou Novartis Pharma Technology Co.

The facility is located 80 km northwest of Shanghai near Yangze River in Jiangsu Province. Novartis started construction of the facility for drug development and production on 24 February 2006.

The company invested US$250m in total in a facility for technical R&D as well as active pharmaceutical ingredients (APIs) and intermediates manufacturing.

The decision to invest in the facility was taken to provide additional capacity for the development and manufacturing of intermediates and APIs by complementing the existing global network of pharmaceutical technical R&D and production sites.

Function

As part of the agreement, the parties have committed to sign a long-term supply contract to guarantee continuous supply of products manufactured at SNPT.

No impact on jobs is planned and Jiuzhou Pharmaceutical will invest in the site and pursue business development opportunities to optimise the utilisation and expand the customer base.

"We look forward to a seamless transition for employees, patients, customers, partners and other stakeholders," added Hua. "We are impressed by the know-how at the SNPT plant and intend to leverage their expertise to develop new opportunities in the pharmaceutical market, in China and globally."

The acquisition of the SNPT API manufacturing facility is subject to customary approval process of the competent authorities and will be completed by the end of 2019.

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