Novartis Sells Swiss Manufacturing Plant to Lonza

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Swiss pharmaceutical company Novartis International AG (NYSE:NVS) (Basel, Switzerland) has offloaded its sterile drug product fill and finish facility in Stein, Switzerland, to Lonza Group (Basel, Switzerland).

The Stein plant, located about 30 kilometers from Basel, has two pharmaceutical manufacturing facilities for solid and sterile dosage forms. Annually, more than 2 billion tablets, capsules, ampoules, prefilled syringes, vials and auto-injectors are manufactured, inspected, packaged and shipped from the Stein site to more than 150 different countries. Novartis said the site was being under-utilised. For Lonza, it will be the first sterile drug product fill and finish facility in its network, and all staff at Stein will be retained.

Novartis has been implementing an overall plan to focus on higher-margin medicines, which has seen the company spinning off certain businesses and making cuts in its manufacturing businesses. Last year, Industrial Info reported on plans by Novartis to cut 2,550 jobs in Switzerland and the U.K. That decision hit its home country hardest, with up to 1,500 jobs to be shed across four Swiss production plants at Basel, Stein, Locarno and Schweizerhalle. The company currently employs 13,000 people across Switzerland. In the U.K., the company also planned to shut its Grimsby pill production plant with the loss of up to 400 jobs. For additional information, see October 8, 2018, article - Novartis Axing 2,550 Jobs in Switzerland and the U.K..

"The intended acquisition of the sterile drug product fill and finish facility in Stein will be the latest phase in our step-wise expansion of parenteral drug product services," said Karen Fallen, Head of Mammalian and Microbial Development and Manufacturing, Lonza Pharma & Biotech. "Combined with our development services, this manufacturing facility will provide our customers with shorter timelines to the clinic and best-in-class quality for parenteral product development through commercialization."

The sterile, multi-product facility is only 10 years old and currently acts as the Novartis Centre of Excellence for sterile clinical (phases 1 to 3) drug product manufacture. Following closing, Lonza will produce drug product at the facility for Novartis as well as providing capacity for additional customers.

Hanns-Christian Mahler, head of Drug Products Services (DPS) for Lonza Pharma & Biotech, added: "Launched just three years ago with a core team of experts, Lonza DPS has since expanded in line with customer demand. Upon closing, the new manufacturing facility in Stein will be our first sterile drug product fill and finish facility and will work in close synergy with our existing facility in the Stücki Park in Basel."

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