Jubilant HollisterStier's USD 300 Million Expansion in US Manufacturing

In a significant move to expand its manufacturing facilities, Jubilant HollisterStier LLC, a branch of Jubilant Pharmova Ltd, has announced an investment of USD 300 million by FY28 in the United States. This strategic investment aims to double their sterile injectable manufacturing capacity, a plan accelerated by tariffs introduced by the administration of former President Donald Trump, according to Chris Preti, CEO of CDMO Sterile Injectables at the company.

The company has already initiated phase one of this expansion by launching a new sterile fill and finish line in Spokane, Washington. Built at the cost of USD 132 million, this development represents the third line at the facility, as confirmed by Preti. The overall capacity at the Spokane facility is set to increase by 50 percent initially, with the total investment eventually enhancing their capacity to 100 million vials annually by 2028.

Preti outlined that the impetus for this expansion comes from a demand-supply gap in the US market and the company's strategy to consolidate its supply chain in the country. Citing a McKinsey study, he said there was a global delta of 700 million units between supply and demand for sterile vials, which Jubilant Pharmova aims to capitalize on through its expansion projects.

(With inputs from agencies.)