Hospira, Inc. has entered an agreement to acquire an API manufacturing facility and an associated R&D facility from Orchid Chemicals & Pharmaceuticals Ltd., an Indian pharmaceutical company, for approximately $200 million. With the acquisition, the company aims to reduce costs, support the supply of key antibiotic products and the future development of APIs.
The 50,000 square meter facility in Aurangabad employs 640 chemists, engineers and technicians. The R&D facility based in Chennai will be dedicated to beta-lactam and other APIs and has approximately 190 employees. Orchid will retain its cephalosporin API business and facilities, and will continue to supply Hospira with API.
"Our decision to acquire Orchid's world-class API facility demonstrates Hospira's continued dedication to the antibiotics space, enhancing cost-competitiveness and ensuring continuity of supply," said Dr. C. Bhaktavatsala Rao, managing director, Hospira India. "This is a top-of-the-line API manufacturing facility that has been recognized by industry leaders for its high standards. We look forward to welcoming our new colleagues from Orchid and leveraging their expertise to continue to bring high quality, lower-cost products to patients around the world."