CDMO Bora Pharmaceuticals Co. Ltd. is expanding its production capabilities with the acquisition of a production facility in Mississauga, ON from pharmaceuticals manufacturer GlaxoSmithKline (GSK), the company announced in a release Monday.
"We are excited to announce today the next phase of our expansion into North America with the acquisition of this world-class facility and we look forward to welcoming the Mississauga manufacturing employees, whom we view as the most significant asset in this transaction, into our business," said Bobby Sheng, CEO of Bora Pharmaceuticals, in a statement. "The Mississauga-based facility is ideally suited with our intention to grow our technical capabilities and scale in the global contract development and manufacturing organization (CDMO) marketplace."
The GSK facility currently produces more than 50 products that are sold across 100 global markets. Under the terms of the deal, Bora will be contracted to produce the GSK products in Mississauga for at least five years.
Bora said the move bolster’s the firm’s position in formulation development and manufacturing services and expands its geographic footprint, technical assets, and adds new dosage forms to its portfolio.
"Our priority is to support our employees through the transition and consult with them along the way, in partnership with Bora,” said Andrew Ehrat, Mississauga Site Director for GSK in Canada, in the release. “We expect to complete the transaction no later than the end of 2020, and in the meantime, we remain wholly committed to maintaining a business which runs safely and efficiently in the best interest of patients."
The deal must clear regulators before it closes. 400 GSK employees in Mississauga will be offered positions at Bora, according to the company.
Last month, GSK sold 15 of its local and regional consumer healthcare brands – including Coldrex cold remedy products, Cetebe vitamin C supplements, and the Tavegyl allergy brand – to German pharmaceutical firm Stada.
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