Halo Pharmaceuticals and Teva have agreed a deal to transfer the production plant in Mirabel, near Montreal, and its employees to the New Jersey-based contract manufacturing organisation (CMO).
“Through this strategically important acquisition we gain a pool of skilled people with wide ranging experience, the opportunity to provide continuing employment to many present employees and to grow our global business”, Clive Bennett, president and CEO of Halo, said.
Inking the deal marks the culmination of “continued efforts” to offload the facility,Barry Fishman, president and CEO ofTeva Canada, said. Before completion of the deal, which is slated for June 30, Teva and Halo must negotiate manufacturing agreements and gain Competition Bureau approval.
The mention of manufacturing agreements suggests Teva intends to outsource some production it now does at the Quebec plant to the CMO. Halo plans to add to this business by expanding its commercial manufacturing and product development businesses outside of North America.
“With the acquisition of this state-of-the art facility, Halo's market reach will expand to Europe in addition to the US and Canadian markets”, Mohd Asif, chief financial officer at the CMO, said. The plant will also give Halo new distribution capabilities and development services.
Halo also has a manufacturing and packaging facility in Whippany, New Jersey. The 167,000 sq ft site houses a kilo lab for API (active pharmaceutical ingredient) synthesis and equipment for solid dosage form manufacturing.
Upon completion of the sale Teva will have three production plants in Canada. The facilities, all of which are in Ontario, give Teva capacity for production of solid dosage forms and penicillin, plus packaging capabilities.