A division of the Novartis Group, the manufacturer and distributor of generic pharmaceuticals, will construct a second manufacturing site in Boucherville, Quebec, expand its drug development laboratory and quality control laboratory, while creating 100 more jobs.
Sandoz Canada president Pierre Frechette said the announcement was a "recognition of our expertise and our ability to meet client demand for top-quality sterile injectable pharmaceuticals".
Driven by a demand for novel drug delivery technologies, the injectable pharmaceutical market recorded revenues of more than $9bn worldwide in 2006 and is forecast to reach more than $12bn by 2010, according to a report published by Kalorama Information.
"The future is extremely promising for Sandoz Canada," Frechette told the Gazette in Montreal.
"It's a sector with a lot of growth in usage, but you also have a lot of brand products losing (patent) exclusivity in the next few years."
Generic injectables have become a $100m a year business for the company and production is expected to increase by 66 per cent by the time the new facility is completed in 2008.
The investment will translate into 40,000 sq ft. (3,716 m2) of new manufacturing space.
The $80m will also go towards the acquisition of additional land and building adjacent to the head office, and the purchase of state-of-the-art laboratory and manufacturing equipment. The current manufacturing site will also undergo improvements to ensure that it maintains its position as a top-performing production facility.
The Boucherville site is the largest small-volume injectable drug production facility in Canada and within the Novartis Group of companies. Its product portfolio includes over 100 molecules such as narcotics, sedatives, antibiotics, ophthalmics, hormone treatments, corticosteroids and cardiology drugs.
About 70 per cent of the drugs currently produced at the Sandoz Canada plant are destined for the Canadian market. Sales of generic drugs in Canada were estimated at $3 billion in 2005.
