Bora Pharmaceuticals of Taiwan clinches $26.6 mil. deal to buy GSK Canadian plant
TAIPEI, NNA – Medicine maker Bora Pharmaceuticals Co. of Taiwan has signed a deal to acquire global medicine maker GlaxoSmithKline Plc.’s Canadian plant for the equivalent of $26.7 million to help grow its international business, the buyer said in a statement Monday.
The expansion adds another North American site to Bora Pharmaceutical’s operations, expands production capacity and adds several countries from which it can export medicines, the statement said.
A new Canadian subsidiary, Bora Pharmaceutical Services Inc., expects to acquire and operate the plant by the fourth quarter of this year, a corporate communications manager told NNA Tuesday. The factory can produce up to 50 types of medicine.
The parent company will also acquire a five-year drug production contract through the GlaxoSmithKline plant, which is in the Canadian province of Ontario near a cluster of international pharmaceutical suppliers, according to the statement.
Bora Pharmaceuticals anticipates boosts in contracting and manufacturing along with its “strategy for future growth,” said the officer.
Providing contract and manufacturing service to other drug makers contributes now to about 70 percent of the Taiwanese firm’s overall revenue, she added.
Bora will be able to ship directly from the Ontario plant to 88 countries and regions, with 70 percent reaching the world’s largest drug market the United States, the statement said. The company hopes to outdo its competitors in Taiwan by exporting to the most places.
The Taiwanese medicine producer operates in China, Japan, the United States, Europe, the Middle East and Southeast Asia today.
The deal marks Bora’s fifth and the largest by acquisition value. Bora acquired a Tainan manufacturing site from Japan’s Eisai Co. in 2013 and in 2018 bought a Taiwan subsidiary of U.S.-based Impax Laboratories Inc.
Bora might keep acquiring properties, the communications manager said. “We will continue to seek and evaluate possible acquisition opportunities, as it’s our goal to expand contracting and manufacturing businesses,” she said.