Company Watch

Kemwell acquires a Pfizer manufacturing facility in Sweden

Our News Bureau - Bangalore

Kemwell, an Indian contract manufacturer, has acquired Pfizer's manufacturing plant in Uppsala, Sweden, for an undisclosed amount. Kemwell will continue to manufacture the anti-inflammatory drug Salazopyrine. Zeibrant Lindqvist, CEO, Pfizer Health AB, says, “By selling the production facility, we believe that the plant and jobs will remain in the region.” The production unit manufactures both API and finished drug. Kemwell is the first Indian contract manufacturer to acquire business abroad.

Pfizer had earlier announced its intention to sell its production facility at Boländerna, in line with the company's strategy to concentrate its production to a smaller number of plants. In Sweden, Pfizer has plants in Helsingborg, Strängnäs and Stockholm.

The plant in Stockholm will be closed in 2008. In Strängnäs, Pfizer plans a new production unit for growth hormone and other biotech drugs.

The acquisition is expected to be completed by April 2006 and will lead to a significant growth in Kemwell's contract business. The facility will provide access to technology and quality standards on a continuing basis. Kemwell plans to introduce other value-added services, such as formulation development, analytical method development and validation to the site.

The additional USFDA approved manufacturing capabilities to its operations will allow the company to use its learning and experience and help it to expand its contract manufacturing business. This acquisition provides Kemwell with a global site to serve its customer base, in addition to its four sites in Bangalore, significantly reducing customers' sourcing risks. According to Subhash Bagaria, Chairman and Managing Director of Kemwell, “The facility is approved by USFDA, EMEA, and Japan's regulatory authority and will supply to 80 markets, including USA, Europe and Japan.”