Denmark company acquires North Raleigh drug plant

cjurney@newsobserver.comJuly 8, 2014 

— The Danish company Xellia Pharmaceuticals has acquired a North Raleigh manufacturing plant from Fresenius Kabi, a German health care company.

Xellia plans to retain all 80 of the people who work at the facility on Capital Boulevard. The sale includes a manufacturing and supply contract that calls for Xellia to manufacture Fresenius Kabi products that will be sold in the United States, said Matt Kuhn, spokesman for Fresenius Kabi USA.

Fresenius Kabi manufactures infusion, transfusion and clinical nutrition treatments and technologies for critically and chronically ill patients. Workers at the Raleigh facility will continue producing Fresenius Kabi’s generic sterile injectable drugs under the contract.

“This transaction will have no impact on Fresenius Kabi’s ability to meet customer demand for the products we currently manufacture at the Raleigh site and we continue to work closely with the FDA to alleviate U.S. drug shortages,” John Ducker, Fresenius Kabi USA president and CEO, said in a statement.

Terms of the deal were not disclosed but according to Wake County property records, Xellia paid $7.5 million for the property.

Xellia develops and produces anti-infective therapies for drug-resistant illnesses. The company makes ingredients for pharmaceutical manufacturers as well as its own finished products, including antibiotics.

The North Raleigh plant is Xellia’s first manufacturing facility in the United States and will expand the company’s production capacity for injectable medicines. Xellia also has production sites in Denmark, Hungary and China.

Xellia executives were not available for comment Tuesday.

Novo A/S, the holding company of Novo Group, bought Xellia in May 2013. The acquisition of the Raleigh factory is part of the company’s move away from making pharmaceutical ingredients to focus on making and selling finished products.

“We have great respect for Fresenius Kabi and its employees and have been in partnership with the company for years as a preferred, trusted supplier of active pharmaceutical ingredients,” Xellia CEO Carl-Åke Carlsson said in a statement.

Fresenius Kabi, which has its U.S. headquarters in Lake Zurich, Ill., has two other manufacturing plants in New York and Illinois. Those sites are where the company has focused recent investments in new technology and expansions, said Kuhn.

Jurney: 919-829-4834

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