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.

Free Daily Newsletter

Like this story? Subscribe to FiercePharma!

Biopharma is a fast-growing world where big ideas come along daily. Our subscribers rely on FiercePharma as their must-read source for the latest news, analysis and data on drugs and the companies that make them. Sign up today to get pharma news and updates delivered to your inbox and read on the go.

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

Mylan is recalling a chemo drug and Hospira a commonly used solution because potentially dangerous particulate has been discovered in vials.

Lilly plans a $91 million plant expansion in Indianapolis, and a $7 million tax abatement tied to the project has generated some debate.

Spectrum Pharmaceuticals has pulled its biologics license application for Rolontis because the FDA needs more CMC information.