Sagent Pharmaceuticals Acquires Xellia’s Raleigh Facility to Expand Lyophilized Injectable Production

VCBeat (WeChat ID: vcbeat) has learned that Sagent Pharmaceuticals, a biopharmaceutical company, recently announced the acquisition of a pharmaceutical manufacturing facility from Xellia Pharmaceuticals. The financial terms of the transaction were not disclosed.

Located in Raleigh, North Carolina, USA, this pharmaceutical manufacturing facility is Xellia Pharmaceuticals’ first plant in the United States, primarily producing small-molecule drugs and biologics. In 2014, the lyophilized products manufactured at this facility received FDA approval.

It is reported that the acquisition will not involve the transfer of any products or intellectual property. Production of certain existing Xellia Pharmaceuticals products will be transferred to manufacturing sites in Cleveland and Copenhagen, while other products from the company will continue to be manufactured in Raleigh following the divestiture. As part of the agreement, Xellia Pharmaceuticals will continue to operate the facility during the transition period.

Xellia Pharmaceuticals is a biopharmaceutical company headquartered in Copenhagen, Denmark, specializing in the research and development, manufacturing, and sales of anti-infective drugs. The company’s main products include vancomycin and daptomycin.

Sagent Pharmaceuticals is a biopharmaceutical company headquartered in Illinois, USA. Founded in 2007, it focuses on the development, manufacturing, sourcing, and sales of pharmaceutical products in the North American market. Acquired in 2016 by Nichi-Iko, one of Japan’s largest generic drug manufacturers, the company currently specializes in the production of injectable formulations. Sagent has established a unique global resource network encompassing rapid development capabilities, state-of-the-art manufacturing, and innovative drug delivery technologies, earning widespread acclaim within the industry. Reportedly, Sagent Pharmaceuticals secured $53 million in Series A financing led by Vivo Capital at its inception, and Zhejiang Hisun Pharmaceutical Co., Ltd. of China also invested $10 million in the company.

Regarding this acquisition, Carl-Åke Carlsson, CEO of Xellia Pharmaceuticals, stated: “In 2018, we defined our strategic focus, transitioning from a manufacturer of anti-infective drugs to a customer-centric pharmaceutical R&D and integrated services provider. As part of this transformation, our strategic decision was to concentrate manufacturing investments in Cleveland and Copenhagen, ensuring the high concentration of our technology, talent, and market resources.”

“The acquisition of this facility marks a significant milestone in our transformation,” said Dr. Peter Kaemmerer, CEO of Sagent Pharmaceuticals. “It not only further strengthens our competitiveness in the U.S. market but also enables us to manufacture lyophilized injectable products.”

In the future, Sagent Pharmaceuticals will leverage new equipment at its manufacturing facility to focus on advancing lyophilization technology for the production of freeze-dried formulations of biosimilar products. Additionally, the company plans to launch Renflexis (infliximab-abda), a biosimilar, in the United States by the end of 2021.

(Compiled by: Feng Yutong)