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| Xellia CEO Carl-Ake Carlsson |
Xellia Pharmaceuticals has laid out expansion plans for its new U.S. facility only two months after establishing a foothold in the country by acquiring a manufacturing facility from Fresenius Kabi. In exchange, the city of Raleigh, NC, will bless the the Denmark-based company with a tax break.
Xellia has agreed to invest at least $100 million and hire 40 people in the next 5 years to win the 5-year, 50% break on its property taxes on the freeze-dried vial manufacturing facility, Wral TechWire reports. "We are very pleased to be able to use this incentive to expand the site..." Xellia CEO Carl-Ake Carlsson said in a statement.
Xellia bought the plant from Fresenius Kabi in July for an undisclosed sum, taking on the 80 employees working there. A supply agreement with the German drugmaker, one of Xellia's long-term API clients, allows it to hit the ground with a guaranteed source of income.
Xellia was spun out of Alpharma in 2008 and then acquired by Novo Nordisk ($NVO) shareholder Novo A/S last year for $700 million. The company has been building on its roots in active pharmaceutical ingredient manufacturing, establishing a freeze-dried vial facility in Copenhagen, Denmark, in 2010. As part of its global expansion plans it also recently completed a $2 million expansion of its Croatian R&D facility.
- read the Wral TechWire story
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