Hetero acquires Johnson & Johnson’s Telangana plant
26 Oct 2022
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Drugmaker Hetero has acquired Johnson & Johnson’s manufacturing plant in Penjerla, Telangana, for Rs130 crore and announced plans to invest an additional Rs600 crore (around $75 million) in the facility.
The plant is spread across 55.27 acres and Hetero looks to make the plant its flagship sterile pharmaceutical and biologics manufacturing unit.
“We are committed to an investment upwards of $75 million to upgrade and enhance existing facilities at the site and expand manufacturing of our global biologics and sterile pharmaceutical products,” managing director Vamsi Krishna Bandi said in a release.
Hetero said once the expansion is completed the facility will provide 2,000 new jobs in areas like biochemistry, pharmaceutical sciences, molecular biosciences, engineering, and ancillary services. “The acquisition reinforces Hetero’s renewed commitment to expand reach and capabilities in order to respond with agility to the world’s evolving health needs and produce high-quality and affordable medicines”, the company said.
PwC acted as the exclusive financial advisor to Hetero on the acquisition of the Penjerla manufacturing facility together with the land, plant and machinery in a slump sale from Johnson & Johnson, it said.
Hetero is an Indian pharmaceutical company and the world’s largest producer of anti-retroviral drugs. It is also among the world’s leading producers of key Active Pharmaceutical Ingredients (APIs) with presence in 145+ countries and backed by 30 years of experience in the pharma sector. Hetero’s business includes APIs, generics, biosimilars, custom pharmaceutical services, and branded generics.
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