Product Diversification Through Expansion into the Animal Health Market

On September 1, 2020, TriRx Pharmaceutical Services, a global CDMO serving the biopharmaceutical market, announced its acquisition of a manufacturing site in Segré, France. The agreement between TriRx and Merck includes transfer of ownership and operations of a state-of-the-art facility that includes dedicated offices, production, sampling, warehouse areas, and a world-class staff, delivering products to all major global markets. The acquisition was predicated on an internal strategy to continually add high-demand capabilities, such as sterile injectables and animal health, to an already robust service offering. 

The transaction also facilitated TriRx’s expansion into Europe, by the acquisition of a best-in-class facility from Merck, one of the largest pharmaceutical  companies in the world. This strategic move seamlessly aligns with our overall future plans. The Segré site offers a stable book of business, including a long-term supply agreement with Merck to continue manufacturing the animal health products formerly produced by MSD. 

An Underserved Industry with Substantial Growth Potential

The production of animal health products serves dual segments — pet care and food supply. The global animal health market was valued at $47.1 billion in 2019 and estimated to be expanding at a compound annual growth rate of 5.8% through 2027.¹ Assuring animal health is a critical component to the world’s food supply.

The regulatory rigors of animal health products, while not identical in terms of oversight, are fundamentally consistent with those for human health pharmaceuticals — much of the same regulatory scrutiny and current Good Manufacturing Practices (cGMPs) exist in both spaces. The capabilities at the Segré site supplement those at our Huntsville, Alabama facility. The acquisition of this site allows us to add sterile injectables to our existing capabilities in the liquids, creams, and ointments dosage forms with additional non-sterile liquids. Furthermore, the competencies needed to manufacture animal health products are analogous to those required for human pharmaceuticals, and we estimate that our animal health production will consume roughly 30–40% of our total production at the Segré site, enabling us to broaden our service offering to our existing clients who operate in both the animal and human health industries. 

Entrance into Europe 

The prospect of adding a centrally located, European facility with a sustained track record of high performance both in regulatory compliance and in delivery, as well as a highly competent, professional staff of around 130 people (we are pleased to have retained 100% of the site staff) that serve the international marketplace was extremely attractive. The facility fits our competitive growth strategy well, as the animal health market is rising at about a 6% compound annual growth rate (CAGR). The Segré site supplies North America, European and International markets, and is licensed to support roughly 120 markets worldwide. With very few of these types of facilities and capabilities currently in the CDMO market, acquiring a sterile injectable facility that specializes in high-quality manufacturing and development for one of the largest pharmaceutical companies in the world — with a history of significant and exceptional performance in both manufacturing and fill-finish — will meet a rapidly growing/underserved market demand.

Future Outlook 

In the next three to five years, TriRx Pharmaceutical Services will continue to take a determined and opportunistic approach to expanding into additional delivery technologies; solid dosage form sterile human health, and biologics capabilities. We will also continue our search for an active pharmaceutical ingredient (API) facility that will facilitate a broad and integrated approach to satisfying market demand for our customers. 

TriRx’s Legacy

Founded and led by a team of pharmaceutical industry executives who have served as both contract service providers and customers, TriRx Pharmaceutical Services has a profound and multifaceted understanding of customer needs. We operate facilities that provide state-of-the-art laboratory, manufacturing, packaging, and warehousing capabilities, with a depth of understanding, commitment, and knowledge to deliver exceptional experiences on every project. 

References

1. Animal Health Market Size, Share & Trends Analysis Report By Animal Type (Production, Companion), By End Use, By Product (Pharmaceuticals, Feed Additives, Vaccines), By Distribution Channel, And Segment Forecasts, 2020 – 2027. Rep. Grand View Research. Feb. 2020. Web.