Xellia Pharmaceuticals has entered into an agreement to divest its Raleigh, North Carolina manufacturing plant to Sagent Pharmaceuticals, a leader of specialty pharmaceutical products with an emphasis on the injectable market
The Raleigh facility is mainly used for producing lyophilised injectable products for Xellia’s own business as well as contract manufacturing.
The transaction does not involve any transfer of product or intellectual property rights. The production of certain Xellia products will be transferred to the company’s two main sterile injectable sites in Cleveland and Copenhagen whereas other products will continue to be manufactured at the Raleigh site after the divestment.
As part of the contract, Xellia will continue to operate the plant for an interim period to assure a smooth and seamless transition. At the end of this period, the operation of the facility will transfer to Sagent and all of the approximately 120 staff will be offered employment with Sagent. Financial terms of the agreement are not disclosed.
Commenting on the divestment, Carl-Åke Carlsson, CEO at Xellia Pharmaceuticals, said: "We expanded our business during 2018 from being a manufacturer and leading supplier of important established anti-infectives to pharmaceutical customers to now include Xellia’s own label of established and innovative value-added sterile injectable anti-infective products which we are selling directly to the USA hospital market. Many of our value-added products are intended to enhance patient care by providing convenience and ease of use for healthcare professionals."
"As part of this transformation we took the strategic decision to focus manufacturing investment on Cleveland and Copenhagen to ensure that we have the production capabilities to match our growing portfolio of established and innovative products and sufficient space to enable the facility expansions as needed.”