Given that Indian drugmaker Ranbaxy Laboratories is under FDA sanctions for its manufacturing misses, a quarterly loss of $25.5 million may not sound so bad. But the January ban of a key API plant stands to make the current quarter worse, and competitors are looking for every opportunity to take even more business away.
Aurobindo has been looking to expand further in Europe, particularly in the sterile injectables business. With a €30 million ($41 million) deal to buy 7 Actavis active pharmaceutical ingredient facilities across Western Europe, the Indian company will be able to do that in one fell swoop.
The Ohm Laboratories plant in New Jersey is currently Ranbaxy's only facility able to turn out product for the U.S. market. Now the FDA has raised questions about manufacturing practices at the active pharmaceutical plant that supplies about 70% of the raw ingredients for U.S. production, Ranbaxy's facility in Toansa.
Many Western drugmakers are buying, building or partnering to establish manufacturing facilities in China. But Shenzhen Hepalink Pharmaceutical, one of China's largest raw heparin makers, has a deal to buy U.S. API maker Scientific Protein Laboratories.
The plan by Teva Pharmaceutical Industries to cut $2 billion-plus in costs leans heavily on making its manufacturing and supply chain more efficient. That restructuring has led it to back out on a new active pharmaceutical ingredient facility it was going to build in India.
Merck's manufacturing network continues to take a beating as the drugmaker acts on its $2.5 billion cost-cutting manifesto which is slated to claim 8,500 positions worldwide in the face of patent losses and revenue shortfalls. Next up, two facilities in Puerto Rico.
Drugmakers outside the U.S. continue to feel the sting of warning letters as FDA inspections of foreign facilities roll on. The most recent foreign plant to come up short is one in Madrid, Spain.
The FDA is seeking 100 volunteers for its Secure Supply Chain Pilot Program that would allow them an easier path for product deliveries if they agree to certain standards.
Chilean drugmaker CFR Pharmaceuticals last week made a $1.3 billion cash-and-share offer for South African drugmaker Adcock Ingram. By filling up Adcock's excess manufacturing capacity and combining their API purchasing power, CFR believes it can reduce production costs.
Fresenius Kabi, the generic drug unit for the German healthcare company, this week received an FDA warning letter for a plant in India. The company said it is dealing with the issues, but its work on the plant will not affect its previous guidance. The company is still expecting its net income to grow 7% to 12% for the year.