Fagron expands its US sterile compounding footprint
Nazareth (Belgium)/Rotterdam (The Netherlands), 5 July 2022 – 7AM CET
Fagron, the leading global player in pharmaceutical compounding, has acquired from Fresenius Kabi a 503B outsourcing facility in Boston. The transaction covers all operational aspects of the facility, including customers, suppliers, and around 80 employees, as well as a supply agreement with Fresenius Kabi.
Rafael Padilla, CEO of Fagron commented: “This acquisition is an important step for us in realizing our strategic objective of becoming the leading global platform for sterile outsourcing services. The demand for outsourced compounding is increasing in the US and aligned to increased regulatory scrutiny necessitates a high focus on quality. Whilst this acquisition will initially be dilutive, we are confident our team will successfully bring the facility in line with our FSS US operations in due course. This expansion will allow us to elevate our US sterile compounding business to the next level and compete with the top-3 players in the US market.”
“We are very happy with the opportunity to add this best-in-class 503B outsourcing facility to our operations. By adding the capacity of this facility to our current operations in Wichita, we not only make another important step towards meeting the continuously growing demand for sterile outsourcing services in the US market, but also significantly strengthen our geographic proximity to existing and potential customers on the East Coast..." Andrew Pulido, President, Fagron North America.
Andrew Pulido, president Fagron North America commented: “We are very happy with the opportunity to add this best-in-class 503B outsourcing facility to our operations. By adding the capacity of this facility to our current operations in Wichita, we not only make another important step towards meeting the continuously growing demand for sterile outsourcing services in the US market, but also significantly strengthen our geographic proximity towards existing and potential customers on the East Coast. This facility was built by Fresenius Kabi to initially serve the leading academic medical center in the area through scale, cost efficiencies and to provide flexibility around production while maintaining very high-quality standards. We expect the transition of the facility towards Fagron processes will take approximately 12 to 18 months and expect it to start making a positive contribution to results in the 2nd semester of 2023. We welcome the Fresenius Kabi Compounding employees in Boston to the Fagron team.”
John Ducker, president and CEO Fresenius Kabi USA commented: “We are pleased to have found a buyer like Fagron, with its experience in hospital compounding, to assure continuity of this business for employees and customers. We are confident that the excellent team in Boston, combined with Fagron’s expertise, will continue to be a compounding partner of choice for hospitals. This divestiture is part of a strategy at Fresenius Kabi to focus on growth in biopharmaceuticals, medical technologies, clinical nutrition, and a broad range of injectable medicines used across the continuum of care.”
About Fagron Sterile Services US
As an industry-leading 503B Outsourcing Facility, Fagron Sterile Services US (FSS), supports patient-focused healthcare facilities across North America with a reliable supply of critical high-quality sterile medications produced through cGMP compliant operations.
The FSS team includes operational and regulatory expertise in pharmaceutical manufacturing and repackaging while leveraging industry-leading automation, advanced environmental monitoring, and sophisticated in-house quality testing labs. Batches are validated to support proper Beyond-Use Dating (BUD) and only released after successful sterility, particulate matter, and potency testing are complete.
A broad product portfolio includes ready-to-administer critical care, labor and delivery, pain management, ophthamlics (including Avastin®), and other specialty medications like the only sterile LET gel, a topical anesthetic. As a trusted 503B outsourcing partner, FSS holds Integrated Delivery Network (IDN) agreements within all major GPOs.
Fagron is a leading global company active in pharmaceutical compounding, focusing on delivering personalized medicine to hospitals, pharmacies, clinics and patients in 35 countries around the world.
Belgian company Fagron NV has its registered office in Nazareth and is listed on Euronext Brussels and Euronext Amsterdam under the ticker symbol ‘FAGR’. Fagron’s operational activities are managed by the Dutch company Fagron BV, which is headquartered in Rotterdam.
Please find the full press release on Fagron's Investor Relations page.
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