In a business update, Gerresheimer announced that it has gained one large order for inhaler manufacturing in Europe but has lost another because “the customer’s inhaler business fell short of its expectations.” As a result, the company said, it plans to invest in a manufacturing facility in Horsovsky Tyn, the Czech Republic and will close a plant in Küssnacht, Switzerland.
According to Gerresheimer, the new order comes from a large international pharma company. Gerresheimer, which already manufactures the same inhaler at its Peachtree City facility in the US, will invest in the Horsovsky Tyn plant over the next two years in order to begin supplying the inhaler in Europe in the fourth quarter of 2020. The company previously announced major expansions at the Horsovsky Tyn facility in 2011 and 2012.
Once full production is reached, the company said, the contract should produce up to €30 million in revenues per year. Termination of the other inhaler manufacturing contract will cost the company about €12 million this year and up to €15 million in the future.
Gerresheimer said that it has already received €4.8 million in compensation as part of ongoing contract termination negotiations and expects that the eventual total will cover the Küssnacht plant’s contribution for 2018, after which the facility will no longer be profitable. The company hopes to move production from Küssnacht to other European facilities by the end of 2019.
Gerresheimer also announced its acquisition of Swiss tech company Sensile Medical, “extending its business model in the direction of an Original Equipment Manufacturer (OEM) for drug delivery platforms with digital and electronic capabilities for pharmaceutical and biopharmaceutical customers.”
Read the Gerresheimer press release.
