Novasep drawing on €40 million to fund international expansion
Another pharmaceutical manufacturing supplier says it needs to expand manufacturing operations to feed growing demand from pharmaceutical makers, particularly in Asia.
Novasep, the French maker of purification systems for the pharmaceutical industry, is tapping €40 million ($53 million) of €310 million ($413 million) in a recapitalization fund to finance "growth projects," including new technologies for purifying biopharmaceutical and pharmaceutical APIs, reports InPharm.
The company recently added a 2,600-square-foot facility to supplement the 6,500-square-foot operation it already has in the Pudong district of Shanghai because of the expansion of Chinese drug manufacturers.
"The ongoing growth of life sciences industries in China and Asia stretches local demand for domestic production and innovation capabilities," the company said in a statement.
China is set to become the second-largest drug market by 2020, and local producers and foreign companies are expanding there. Pfizer ($PFE) and Chinese partner Zhejiang Hisun Pharmaceutical recently held a ceremonial document-signing in Los Angeles to solidify plans for a joint venture.
Novasep says interest in purification systems in Asia is coming from a wide spectrum of pharmaceutical manufacturers, including makers of recombinant proteins, biosimilars, monoclonal antibodies and insulin. The expansion in China adds to the company's 12 other operations in the U.S., Germany, Belgium, the Bahamas and France.
The €310 million recapitalization also is allowing Novasep to replace debt with equity.
- check out the InPharm story