Olon Buys Indian API Plant
Olon, an Italian API contract development and manufacturing organization (CDMO) and generics supplier, has finalized the purchase of a generics API manufacturing facility in Mahad, India. Financial details were not disclosed.
With this acquisition, Olon said it has successfully finalized its three-year development plan and will now move to its next target, which is to play an important role in manufacturing biologics APIs.
The Milan-headquartered company also bought Ricerca Biosciencies’ chemical division in mid-2017 and Capua BioServices, which provides microbial fermentation services, in January 2019.
Olon has set up a new company Olon API India, headquartered in Mumbai, to run the acquired plant, which mainly produces Rifampicin and its derivative. These are used to treat several types of bacterial infections, including tuberculosis.
The Mahad site supplies products to Sandoz, a division of Swiss drugmaker Novartis, and the companies have agreed a long-term contract to guarantee a continuous supply of products from the plant. The facility employs approximately 270 staff.
The Italian CDMO said it intends to invest in the site and pursue business development opportunities to optimize the plant’s utilization and expand its customer base.
Olon employs about 2,000 people at 10 manufacturing sites worldwide (eight in Italy, and one each in Spain and the US, turning over $400 million in 2018.