The Rs. 50 crore Kemwell Pvt Ltd, a contract manufacturing company, has acquired Pfizer's manufacturing plant in Uppsala, Sweden, for an undisclosed sum. The two-decade-old company did not reveal the sale details because of the non-disclosure clause in the agreement between the two parties. However, Kemwell stated that the amount was being raised with banks in Sweden and the acquisition is expected to be completed in April 2006.
"Pfizer's plant production unit certified by the US FDA, EMEA, and Japan's regulatory authority manufactures both APIs and formulations. With this strategic acquisition, Kemwell becomes the first Indian contract manufacturer to acquire business abroad," informed Subhash Bagaria, chairman and managing director of Kemwell.
As part of the agreement, Kemwell will continue to manufacture Pfizer's 50 year-old anti-inflammatory drug Salazopyrine which is competing in a global market valued at $200 million. It will also scout for global outsourcing orders. The existing 170 professionals will also be retained.
The acquisition gives the company a head start in the global arena beginning with Pfizer's 80 supply markets for Salazopyrine including the US, Europe and Japan. From this acquired Swedish plant, Kemwell will be able to generate Rs. 200 crore turnover by the next financial year.
Beginning April 2007, Kemwell would also invest in the facility for other value-added services such as formulation development, analytical method development and validation to the site.
Further, Kemwell is also expected to capitalise the advantage of the location at Uppsala, which is a biopharmaceutical research hub, where it will be associated with product development and manufacturing through licensing agreements, stated Bagaria.
Perake Oldentoft, Kemwell Board Member based in Sweden, will oversee these operations.
Bangalore-based Kemwell has three plants here, which serve the top five multinational pharma companies apart from local players. The company has an expertise in liquid orals, tablets, ointments, creams and external drops production. Its fourth facility, an export-oriented unit for the US-Europe markets, is coming up at Neelamangala in Bangalore at an investment of Rs. 40 crore (fixed assets alone) with a five billion tablet capacity. It is expected to be commissioned in mid-2006.
The facility expansion in contract manufacturing business will see Kemwell double its manpower from the existing 300 in Bangalore at its three plants to 600 which includes the Swedish site personnel of 170, informed, Bagaria.