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Hovione turns to Ireland - The Land of API Opportunity

By C.Bachelor, Pharmaceuitical Manufacturing News
Monday, 15 December 2008

Hovione has announced that it has agreed to acquire Loughbeg Active Pharmaceutical Ingredients (API) site in Ireland from Pfizer, by April 2009. At a time when most fine chemical producers are investing in Asia, Hovione is turning to Ireland, specifically to Cork. Cork is recognized to house the highest concentration of API

production anywhere in the world, with an excellent cGMP record with the health authorities since the mid-nineties. These sites belong to Large Pharmaceutical organizations, organizations that are now embracing outsourcing as a key part of their long-term manufacturing strategy. "We have been manufacturing in China for over 25 years - we know very well what China can do for the Pharmaceutical industry, but we also know what it can't do, and it is for those reasons that we are now in Cork" said Guy Villax, Chief Executive, "The Cork site, the New Jersey Technology
Transfer Centre, Loures in Portugal and Taizhou and Macau in China now provide Hovione site(s) meets FDA requirements for APIs but every site is suited to a different and well defined mission" he added.

Pharmaceutical manufacturing needs to become lean and cost-effective and this is always a challenge. The outsourcing business model gives manufacturers a head start, as contractors can provide their services to any company for any product and thus benefit from lower risk, better utilization of facilities and scale.

In addition the contractor can select those compounds that have a good fit with its plant's technical capabilities, in turn the pharmaceutical company can avoid the expensive plant modifications often required to manufacture these compounds.

It is this ability to produce for anyone that will contribute to making compounds fast and less expensively to the benefit of all stake-holders.

However achieving this goal requires the ability to produce multiple small production campaigns any simultaneously, the skill to do rapid change-overs with validated cleaning, multi-purpose equipment design and lay-out that operate within a quality system specially designed for high levels of compliance yet of simple execution. "The combination of Hovione's 50 years of experience in API manufacture and contract manufacturing and the capabilities of the existing plant and compliance tradition of the Cork colleagues are a winning combination", said Noe Carreira, VP Manufacturing.

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