Adragos snaps up Sanofi’s Japanese manufacturing facility

24-Oct-2022 - Last updated on 24-Oct-2022 at 14:53 GMT

The German CDMO signs an agreement to acquire Sanofi’s Kawagoe-based facility, which adds to the company’s existing presence in the country.

Adragos Pharma is a contract development and manufacturing organization (CDMO) based out of Munich, Germany, that currently owns three sites in Livron, France, Leipzig, Germany, and Toride, Japan.

Through its acquisition agreement with Sanofi, the CDMO will add another manufacturing facility in Kawagoe in Japan, which is located just outside of Tokyo. Adragos stated that the financial terms of the transaction will not be disclosed.

However, the CDMO did announce that it had entered a long-term supply agreement with Sanofi, and the two would become strategic partners in the Japanese market. As a result of the deal, Adragos will become one of the top three largest ‘pure-play’ CDMOs in Japan, the company stated.

Adragos outlined that it plans to expand the site’s services and capabilities further, with a view to bringing in additional customers in the Japanese market, whilst also introducing new customers from Europe and North America.

According to Sanofi, the facility sold to Adragos produces 73 different products and 103 items, with all of Sanofi’s products destined for the Japanese market delivered from the location. The space itself is 50 years old and covers approximately 200,000-square-meters.

The Kawagoe facility is able to manufacture oral solid and sterile formulations, as well as also carrying out the final packaging stages. It also conducts visual inspection and retesting services for the Japanese and Asian markets.

Adragos outlined that it plans to retain all staff members currently working at the site, including the location’s leadership team.

Andreas Raabe, CEO at Adragos Pharma, said, “We are very pleased and honored to further deepen our excellent relationship with Sanofi. Japan ranks among the largest and most attractive global pharma markets, yet CDMO activities are relatively nascent.”

Adragos has been able to fund the expansion in Japan after FSN Capital VI became a majority shareholder in the CDMO back in August 2021.

At the time of the announcement, the investment firm described how it would provide ‘additional momentum’ by allowing the CDMO to expand its manufacturing network.

FSN also stated that it would focus on the acquisition of production sites from large pharma players, which it has followed through on with the deal with Sanofi. The investment firm also outlined that there was a goal of securing a leading position in an attractive market, which lines up with the move to become one of the largest pure-play CDMOs in Japan.