Xellia Expands Manufacturing Capabilities

Xellia Pharmaceuticals, a specialty pharmaceutical company that provides anti-infective treatments, has acquired Fresenius Kabi’s lyophilized (freeze-dried) vial manufacturing facility in Raleigh, North Carolina. The deal also specifies that Xellia will have a continuous manufacturing and supply agreement with Fresenius Kabi USA. Financial details have not been disclosed.

The company says the acquisition will not result in any job losses, saying they plan to keep the nearly 80 staff members currently employed at the plant.

The deal optimizes global strategies for both companies, which have partnered before. Xellia has provided Fresenius Kabi with supplies for pharmaceutical ingredients for years, according to the Triangle Business Journal.

“This agreement is part of our global strategy to optimize our manufacturing and supply network,” John Ducker, president and CEO, Fresenius Kabi USA said. “Both companies are committed to assure a smooth and seamless transition for customers and employees. This transaction will have no impact on Fresenius Kabi’s ability to meet customer demand for the products we currently manufacture at the Raleigh site and we continue to work closely with the FDA to alleviate U.S. drug shortages.”

Xellia CEO Carl-Åke Carlsson said the deal gives them the capability to supply finished dosage forms, enabling better service for its global customer base of nearly 500 pharmaceutical companies.  He said the acquisition is a “great opportunity for us to expand our manufacturing capabilities into the U.S., which is a key market.”

The Fresenius buy-out is the latest phase in Xellia’s global expansion plans.  In May, it invested $2 million at the Company’s Product and Innovation R&D Centre of Excellence in Zagreb, Croatia. The money will provide new facilities for the research team, which recently added 18 new members in pharmaceutical and analytical sciences, clinical innovation and development, project management, R&D quality, and intellectual property.