INDIA – Hetero Pharmaceuticals has acquired Johnson & Johnson’s manufacturing plant in Penjerla, Telangana for Rs 130 crore (US$16 million), and will invest an additional Rs 600 crore (US$73 million) in its upgrade according to an Economic Times report.
J&J used the 55.27-acre manufacturing plant to produce consumer health products such as its baby care line, beauty line, earbuds, electrolyte drinks, and oral and skincare line.
The facility, which was built in 2016, was reportedly put up for sale after the company took a Rs 310 crore (US$38 million) impairment charge.
The 55.27-acre facility will be Hetero’s flagship sterile pharmaceutical and biologics manufacturing unit, creating 2,000 new jobs, the company said in a statement.
With this facility, Hetero aims to add 2,000 new jobs in biochemistry, pharmaceutical sciences, molecular biosciences, engineering, and ancillary services.
The acquisition reinforces Hetero’s renewed commitment to expand reach and capabilities in order to respond with agility to the world’s evolving health needs and produce high-quality and affordable medicines, the company said.
Hetero said the brownfield manufacturing facility together with land, plant, and machinery has been acquired from Johnson & Johnson Pvt Ltd in a slump sale without disclosing the financial details.
This is the second plant sold by J&J in India. It sold medical division unit in Himachal Pradesh’s Baddi as part of a strategic management decision in FY22.
Last month, the Maharashtra government’s Food and Drug Administration agency revoked J&J’s license to manufacture baby powder after talc samples analyzed failed quality checks.
J&J’s product sales have been hit badly following allegations of asbestos contamination in its talc-based baby powder.
The company said in August that it would stop selling talc-based baby powder globally on 2023, more than two years after it ended US sales of the product, which drew thousands of consumer safety litigations.
In other related news, Sanofi is selling a manufacturing plant that is currently supplying all of its medications to the Japanese market, Fiercepharma reports.
The French pharmaceutical company has agreed to sell its manufacturing facility in Kawagoe, Japan, near Tokyo, to German CDMO Adragos Pharma, according to the buyer.
The financial terms were not disclosed by the companies. According to a Sanofi spokesperson, the drugmaker will transfer the business to Adragos via a company split by the first quarter of 2023.
The Kawagoe factory manufactures 73 different items. According to Sanofi’s website, all products for the Japanese market are delivered from the location.
Adragos will continue to manufacture products for Sanofi for the next five years under a separate long-term supply agreement and will become a strategic partner for the Japanese market.
According to the companies, the 200 employees at the site will continue to work under the Adragos banner.
The site has been producing drugs for over 50 years. It currently produces oral solids and sterile liquids, as well as packing and retesting for the Japanese and Asian markets. The plant is located on a 50-acre plot of land.
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