Baxter International, which picked up three plants in its just-completed buyout of Claris Injectables, said it intends to start investing in the facilities to expand capacity and add new capabilities.
The Deerfield, Illinois-based specialist in sterile injectable drugs last week said it had completed its $625 million deal for the Indian company, which includes three manufacturing facilities—one of which FDA approved—a portfolio of approved drugs and a pipeline of potential new products.
Baxter will begin adding both capacity and new technologies to the plants, including new aseptic manufacturing and lyophilization and new technology platforms in areas like cytotoxics, aseptic development and complex formulations. It also will add to Claris’ R&D capabilities to increase and accelerate its pipeline output.
“The combination of Baxter and Claris Injectables will allow us to increase access to lower-cost generic injectables and strengthen our ability to meet the needs of healthcare providers and patients around the world.” CEO Joe Almeida said in a statement.
The addition of Claris is expected to add 50 products to Baxter’s portfolio in 2017, almost 20 more in 2018 and 2019 combined, and a stream of 10-15 new products per year beginning in 2020.
Baxter makes both difficult-to-manufacture oncology drugs as well as a range of standard-dose products, like anti-infectives and analgesics, while Ahmedabad-based Claris makes anesthesias and analgesics, renal, anti-infectives and other products.
The deal allows Baxter to boost its standing in the $40 billion sterile injectables market, which is forecast to continue to grow at a 10% compound annual growth rate. But other drugmakers have the same idea.
Baxter was among companies that were reportedly interested last year in buying Indian sterile injectables maker Gland Pharma, which was snatched up instead by Shanghai Fosun Pharmaceutical Group with a $1.35 billion deal for an 86% stake in Gland. That deal was supposed to close any day as well, but may now be in trouble.
Reuters on Monday reported, citing a single unnamed source, that the deal is meeting resistance from some in government. It has been approved by Chinese regulators and by India's Foreign Investment Promotion Board, but still needs the approval of India’s Cabinet Committee on Economic Affairs. It would be the largest buyout of an Indian business by a Chinese company.
Shanghai Fosun told the news service that the closing of the deal has been pushed back to September 26.