French CDMO Delpharm Secures $42M Investment to Modernize Canadian Injectables Plant
Delpharm, a French contract development and manufacturing organization (CDMO), has received a significant boost to its Canadian operations with a 60 million Canadian dollar ($42 million) investment from the Canadian government. The funds will support a comprehensive modernization project at the company's injectables facility in Boucherville, Quebec, which Delpharm acquired from Sandoz in 2022.
Expansion and Modernization Plans
The investment marks the beginning of a multiyear campaign to upgrade and expand the Boucherville site, one of Canada's largest sterile injectables production facilities. Delpharm's modernization project is expected to reach a total investment of over 200 million Canadian dollars ($140 million) by its completion in 2031.
Key aspects of the modernization plan include:
- Installation of new filling lines
- Upgrades to existing equipment to meet current regulatory standards
- Replacement of approximately 95% of the existing equipment
The facility currently produces 65 million units annually, primarily for the North American market, generating yearly revenue of 150 million Canadian dollars ($105 million). The site specializes in sterile drugs packaged in vials and ampoules.
Strategic Importance and Market Impact
The Boucherville plant plays a crucial role in Canada's pharmaceutical supply chain, producing 20 of the 100 medicines deemed critical to the Canadian healthcare system. This investment is expected to enhance the site's capabilities and secure its position as a key supplier of essential generic products.
Stéphane Lepeu, Delpharm's commercial chief, emphasized the strategic importance of the investment, stating, "This investment enhances the appeal of our Boucherville site, recognized as our centre of expertise in sterile and biological products for the North American market." He added that the move supports Delpharm's broader goal of cementing its position among the world's top five CDMOs.
Industry Context and Future Outlook
The investment in Delpharm's Boucherville facility comes amid a broader trend of significant investments in fill-finish facilities across the pharmaceutical industry. Recent examples include:
- Afton Scientific's $200 million expansion in Charlottesville, Virginia
- Bora Pharmaceuticals' $30 million acquisition of Emergent BioSolutions' Baltimore fill-finish plant
- Novo Nordisk's $4.1 billion investment in a second fill-finish facility in Clayton, North Carolina
- Eli Lilly's $5.3 billion investment to boost manufacturing capacity
These investments highlight the growing demand for advanced manufacturing capabilities in the pharmaceutical sector, particularly in the areas of sterile injectables and biologics production.
References
- CDMO Delpharm gets cash infusion from Canada to help modernize former Sandoz injectables plant
Equipped with a 60-million-Canadian-dollar ($42 million) investment from the Canadian government, CDMO Delpharm is striking out on a multiyear campaign to modernize, upgrade and expand an injectables facility it bought from Sandoz in 2022. The plant, which supplies drugs locally and to the U.S., is among the largest for sterile injectables production in Canada.
Explore Further
What are the strategic goals of Delpharm with the modernization of the Boucherville facility by 2031?
How does Delpharm's investment in its Canadian injectables plant compare in size to other recent pharmaceutical investments in North America?
What regulatory standards will the upgraded equipment at Delpharm's Boucherville facility need to meet?
Who are Delpharm's main competitors in the sterile injectables CDMO market, and what are their recent activities?
What role does the Boucherville plant play in Delpharm's strategy to become one of the world's top five CDMOs?