Xellia Pharmaceuticals, a global leader in the manufacturing of fermentation-based anti-infective active pharmaceutical ingredients (APIs), announced plans for a gradual closure and transition of its manufacturing operations in Copenhagen, Denmark, to facilities outside of Denmark. The phased migration of the company’s anti-infective products will take place over eight to 10 years to ensure a continuous, stable supply of critical medicines, culminating in the eventual retirement of its Copenhagen manufacturing site.
“Xellia Pharmaceuticals is committed to safeguarding the responsible production and reliable supply of our critical anti-infectives for patients worldwide who rely on them in the fight against infections. Resilient operations are key to ensuring we can continue to deliver on this for many years to come,” said Michael Kocher, Chief Executive Officer, Xellia Pharmaceuticals.
“We invest in this extensive evaluation and transition process to future-proof our supply chain, having concluded that, despite exhaustive efforts to navigate constraints and sustain local production, our current environment is unfortunately unsustainable in the long term”.
This planned operational transition out of Copenhagen reflects Xellia Pharmaceuticals’ ongoing efforts to address the challenges of intense price pressure, rising operational expenses, and inherent market dynamics within the anti-infectives sector. The company is now transforming its setup significantly to enhance long-term manufacturing sustainability and supply chain resilience. Several potential locations within and beyond the organization’s current manufacturing network are being evaluated as part of the transition.
A transfer of the antibiotic API Vancomycin Hydrochloride out of Copenhagen to other manufacturing facilities within its network will initialize the phasing of supply chain adjustments. This is set to be completed in the course of 2028. A geographic scenario detailing of the remaining products manufactured in Copenhagen is underway in parallel.
“This marks the beginning of a transition that will span nearly a decade and will require ongoing support from and for our people, who have always been our greatest strength,” said Michael Kocher, Chief Executive Officer, Xellia Pharmaceuticals.
“We are committed to transparency in our communication about Xellia’s future planning efforts, and the fact that this is an extensive timeline with no planned employment impact on the Copenhagen production site for the next three to four years underlines this, as we look to support one another through the upcoming changes.”
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