Mylan snaps up HIV-focused South African facility from Ascendis for $9.4M

Johannesburg
Ascendis decided to let the Johannesburg facility go due to its low utilization and to reduce the complexity of the company’s pharma operations in South Africa. (Thissatan/iStock/GettyImagesPlus/GettyImages)

Global pharma giant Mylan shelled out $9.4 million for Ascendis Health’s South African manufacturing plant that is focused on producing antiretrovirals to combat HIV.

The deal was first reported last month in South Africa. Mylan is expected to create a state-of-the-art manufacturing center at the plant located at Isando in Johannesburg for the production of antiretrovirals, Fin24 reported.

Ascendis’ chief executive, Thomas Thomsen, told the publication that the company decided to let the roughly 90,000-square-foot facility go due to its low utilization and to reduce the complexity of Ascendis’ pharma operations in South Africa.

Whitepaper

Simplify and Accelerate Drug R&D With the MarkLogic Data Hub Service for Pharma R&D

Researchers are often unable to access the information they need. And, even when data does get consolidated, researchers find it difficult to sift through it all and make sense of it in order to confidently draw the right conclusions and share the right results. Discover how to quickly and easily find, synthesize, and share information—accelerating and improving R&D.

Ascendis assumed ownership of the plant in 2015 as part of its $24.6 million deal to acquire Akacia Healthcare. The facility has the capacity to produce regular pills, effervescent tablets, semisolid and hard gelatin capsules.

“Mylan has invested significantly in its scientific platform and created broad capacity for global ARV supply,” Rajiv Malik, Mylan’s president, told Creamer Media’s Engineering News, adding that Mylan’s global HIV initiative is one of its key priorities.

“Mylan’s innovations have helped fuel a steep decline in ARV drug costs over the last decade, and the integration of the Isando site into our global manufacturing network will help us meet unmet patient needs in South Africa,” he said.

Suggested Articles

The FDA has come down on a small U.S. drugmaker for taking a skin medication to market even though there were out-of-spec test results at release.

Sanofi, which has moved purposefully into high technologies to get more from its manufacturing, will lean even more on that strategy to save costs.

Just months after a C-suite shakeup at Amneal, the generics company has struck a $220 million deal for AvKare, known on the street as R&S Northeast.