Xellia To Divest North Carolina Mfg Plant to Sagent

By Lillian Torres -

March 7, 2019

Xellia Pharmaceuticals, a specialty pharmaceutical company focused on anti-infective treatments and globally headquartered in Copehangen, Denmark, has entered into an agreement to divest its Raleigh, North Carolina manufacturing plant to Sagent Pharmaceuticals. Sagent is a Schaumburg, Illinois-based company of Nichi-Iko Pharmaceuticals, a Tokyo-based generics company, and is focused on injectable products.

The Raleigh facility is mainly used for producing lyophilized injectable products for Xellia’s own business as well as contract manufacturing. The manufacturing site is approved for manufacturing both small-molecule and biologic products. The transaction does not involve any transfer of product or intellectual property rights. The production of certain Xellia products will be transferred to the company’s two main sterile injectable sites in Cleveland, Ohio and Copenhagen, Denmark, whereas other products will continue to be manufactured at the Raleigh site after the divestment.

As part of the contract, Xellia will continue to operate the plant for an interim period. At the end of this period, the operation of the facility will transfer to Sagent, and all of the approximately 120 staff will be offered employment with Sagent. Financial terms of the transaction have not been disclosed

The divestment comes following recent investment by Xellia in the US. This commercial organization is supporting the launch of its own label established and anti-infective drugs to US institutional markets. In February (2019), Xellia received US Food and Drug Administration (FDA) approval for the first product from its pipeline, premixed vancomycin injection in a ready-to-use (RTU) bag. The company has also made equipment upgrades and building improvements to its manufacturing site in Cleveland, Ohio and is working with the FDA to commence full manufacturing operations at the site during 2019.

Source: Xellia and Sagent