Xellia Pharmaceuticals expands into the US with acquisition of manufacturing plant

Xellia Pharmaceuticals has acquired Fresenius Kabi’s dedicated lyophilized (freeze-dried) vial manufacturing facility in Raleigh, North Carolina. The deal includes a continuous manufacturing and supply agreement with Fresenius Kabi USA. Financial details are not disclosed.

The manufacturing site is located close to the world famous Research Triangle Park and is Xellia’s first facility in the US, significantly expanding the company’s manufacturing capacity for injectable pharmaceutical products. Xellia intends to retain all staff currently employed at the site and will continue to manufacture certain products at the site for Fresenius Kabi.

In the future, Xellia plans to employ more staff as it expands the site further.

Commenting on the acquisition, Carl-Åke Carlsson, CEO Xellia said: “This is a great opportunity for us to expand our manufacturing capabilities into the US, which is a key market for us. We have great respect for Fresenius Kabi and its employees, and have been in partnership with the company for years as a preferred, trusted supplier of APIs. I believe this acquisition will be a win-win situation, benefiting both companies and our customers.”

“This agreement is part of our global strategy to optimise our manufacturing and supply network,” said John Ducker, president and CEO, Fresenius Kabi USA.

“Both companies are committed to assure a smooth and seamless transition for customers and employees.This transaction will have no impact on Fresenius Kabi’s ability to meet customer demand for the products we currently manufacture at the Raleigh site and we continue to work closely with the FDA to alleviate US drug shortages.”

Xellia is increasingly moving on from its origins as a manufacturer of APIs to better serve its global customer base of over 500 pharmaceutical companies by supplying the finished dosage form (FDF) of its drugs. This acquisition is part of the latest phase of Xellia’s on-going global expansion plans, which include an investment of $2.0 million at the company’s product and innovation R&D centre of excellence in Zagreb, Croatia in May.