Quebec-based JAMP Pharma Group says it will acquire a large manufacturing facility in the province in a bid to boost pharmaceutical production in Canada, which is faced with thousands of drug shortages.
The purchase from Pharmalab Inc., announced Thursday, is pending approval by the Superior Court of Quebec. It is set to add more than 100,000 square feet of manufacturing space to the portfolio of JAMP, which hopes to repatriate the production of more than 100 different new generic drugs in the country.
“This acquisition allows us to operate our very own production facility in the country for the first time,” said Alexandra Lewicki, Marketing and Communications Director at JAMP, in an interview.
Levis, Que.-based Pharmalab, a family-owned pharmaceutical manufacturer that has operated for more than 70 years, ceased operations at the facility in August last year after serious financial difficulties, laying off more than 170 employees in the process.
JAMP’s purchase seeks to address the lack of domestic generic drug production. Only 12 per cent of pharmaceutical products consumed by Canadians are made in the country, according to the company. Furthermore, there were more than 2,700 drug shortages across the country between 2022 to 2023, according to the most recent data published by Health Canada in November.
“This acquisition strengthens the Canadian supply chain and contributes to addressing drug shortages, an issue that was particularly highlighted during the pandemic,” JAMP said in a news release Thursday.
A Canadian shortage of Lenoltec No. 4, the generic version of Tylenol 4, and a worldwide shortage of diabetes drugs – including Ozempic, the brand name of an injectable semaglutide drug marketed by Novo Nordisk – are among the many gaps that have drawn public attention to the pharmaceutical industry’s strain to meet demand.
The portfolio of drugs JAMP manufactures includes over 300 molecules, including those used to produce its generic versions of diabetes drugs and injectables.
Ms. Lewicki said the company plans to have the facility up and running within the next few months, with plans to rehire as much of the 170 employees that lost their postings with Pharmalab to work at the facility as possible.
“While the priority for the next few months will be to properly integrate this new asset in our ranks, we are always on the lookout for more ways to grow the business, particularly if it allows us to have a positive impact on the overall supply chain in Canada,” she said.
While JAMP Pharma Group is private, and does not share financial information, Ms. Lewicki told The Globe and Mail that its gross sales have grown by 29.2 per cent over the past five years. The company has filled 52.8-million prescriptions for the 12 months ending in September, 2023, an increase of 16.3 per cent compared with the previous period, she added.