Sovereign Pharmaceuticals, a subsidiary of Alora Pharmaceuticals, acquired most of Monarch's manufacturing operations as part of a bankruptcy sale.
The purchase of “substantially all” of Monarch’s operations in Forth Worth, Texas, gives Alora an additional 60,000 square feet of manufacturing space, bringing its total to more than 300,000 square feet, the company said in a Jan. 10 press release. The Monarch assets are located in the same complex as Sovereign’s main manufacturing operations.
The sale through bankruptcy court was completed Jan. 4. The companies didn't release financial details.
Additionally, Alora plans to keep 48 Monarch employees and will make some renovations to the facility.
"The acquisition of the Monarch assets will significantly improve our ability to manufacture solid, semi-solid and liquid manufacturing in large volumes," Art Deas, Alora’s chief executive, said in the release. “This is a strategic acquisition that will provide significant opportunities for Alora and our contract manufacturing volume and capabilities.”
Monarch, which filed for Chapter 11 bankruptcy Nov. 7, was hit with a warning letter by the FDA dated June 10, 2022. The agency reprimanded the company for failing to investigate any unexplained discrepancies or batch failures and not using appropriately designed and sized equipment plus other manufacturing deficiencies.