Spray drying involves converting pharmaceutical liquid solutions into tiny droplets that are rapidly dried with hot gases such as nitrogen. This turns medicinal products into fine powders that can be easier to take as inhalable or oral formulations, especially for compounds that are hard to dissolve in water.
Hovione’s latest investment, whose value is undisclosed, is designed to nearly double the capacity of its facility in Cork, Ireland, and kick off years of expansions of its spray drying and tableting capabilities at the US facility in East Windsor. It is also expected to lead to 40 new jobs across both sites.
“Strengthening our facilities and teams in the USA and Ireland allows us to better serve our customers and provide flexible supply options for both small- and large-scale programs,” said Hovione CEO Jean-Luc Herbeaux in a public statement. “By increasing our capacity and enhancing our technological capabilities, we are even better equipped to help our customers bring new and more complex drugs to market.”
Hovione was founded by the Portuguese Villax family in 1959, originating as a lab in the basement of the family home. The company remains privately owned with its shareholder structure dating back to 1964.
In 2021, the firm revealed plans to invest $170 million in its facilities in Portugal, Ireland, and New Jersey and revealed that it had bagged $300 million in sales in the previous year. The firm also acquired the startup ExtremoChem in late 2023 to nab its expertise in the synthesis of bio-inspired synthetic sugars.
The global CDMO market is set to grow by 8.5% per year from $242.6 billion in 2024 to $465.1 billion by 2032, with North America holding 38.7% of the total market. The growth is being spurred by increasing prevalence of chronic diseases and the building arsenal of pharmaceutical products to improve our health.
The spray drying segment of the pharmaceutical market, in turn, was valued at around $1.9 billion in 2022 and expected to hit $3.9 billion by 2032, with key players including Micro Powders, GEA Group and SPX FLOW.
Hovione’s expansion takes place as many companies are building up their pharmaceutical manufacturing muscle via internal investments. For example, Spain’s Esteve Pharmaceuticals infused its Girona plant with $108 million in July and big pharma company GSK beefed up its US manufacturing site with up to $800 million to double its capacity last month.