Olon acquires API manufacturing plant in Maharashtra, India to expand global footprint

Olon, a prominent developer and manufacturer of active pharmaceutical ingredients (API) based in Italy, has strategically expanded its global operations with the acquisition of a generics chemical operations API manufacturing plant located in Mahad, Maharashtra, India. This move is part of Olon’s ambitious strategy to accelerate growth by incorporating new Contract Development and Manufacturing Organization (CDMO) projects and fostering the development of new generic products specifically for the burgeoning Indian pharmaceutical market.

Paolo Tubertini, CEO of Olon, expressed enthusiasm about the acquisition, stating, “It comes with a world-class manufacturing facility and a dedicated team of experts that will support us in delivering high-quality pharmaceuticals that meet or exceed customer expectations and regulatory requirements.”

This acquisition follows a series of strategic expansions by Olon, including last year’s acquisition of the chemical division of Ricerca Biosciences and an investment exceeding €10 million to expand API manufacturing lines at its Settimo Torinese plant in Italy. The Mahad plant, which has been a key supplier to the Novartis Group’s Sandoz division, is renowned for its robust API manufacturing capabilities.

As part of the asset purchase deal, Olon and the existing clients of the Mahad facility, including Sandoz, have entered into a long-term supply contract to ensure a continuous supply of products. This agreement underscores the strategic importance of the Mahad site in Olon’s global supply chain.

Looking ahead, Olon plans significant investments in the Mahad site to enhance its operational efficiencies and expand its customer base. Tubertini added, “We are impressed by the know-how at the Mahad plant and intend to leverage their expertise to develop new opportunities in the pharmaceutical market, in India and elsewhere.”

Furthermore, as part of Olon’s three-year development plan, the company aims to assert a more significant role in the biologics API manufacturing sector, indicating a broader strategic vision that encompasses both traditional and biologic API production.

The acquisition of the Mahad API manufacturing plant is expected to be finalized in early 2019, following a detailed transition process, setting the stage for Olon’s increased presence and influence in the global pharmaceutical manufacturing landscape.