Jubilant Pharmova's arm to invest $300 million in US, more details

Jubilant HollisterStier LLC, the US-based arm of pharma major Jubilant Pharmova, has announced an investment plan totalling $300 million to double its sterile injectable manufacturing capacity at its Spokane, Washington facility by the end of fiscal year 2028. The expansion, structured in two phases, began with the opening of a $132 million third sterile fill and finish line.

Chris Preti, CEO of CDMO Sterile Injectables at Jubilant, stated, "Our overall investment is almost $300 million at our Spokane facility. This is the first of the two phases. This $132 million is phase one, which is our third line."

The company expects the enhanced facility will address a significant shortfall in global sterile vial supply, with a gap of approximately 700 million units between demand and supply, as highlighted by a referenced McKinsey study.

The rationale for the investment is rooted in the persistent supply-demand imbalance in the sterile injectables market and evolving customer expectations.

According to Preti, Jubilant Pharmova realised this strategically that there was going to be a glut, or a need, a specific need in the marketplace for sterile vial capacity. "So we entered this project a few years ago, and this project will allow us to actually double our capacity."

The push for onshore manufacturing in the US, accelerated by former President Donald Trump's tariff policies, has further motivated the company's expansion.

Preti added, "What I would say is the tariff situation created a fortuitous or amplified the situation, because now there's even more of a desire for US manufacturing, or onshore manufacturing in the US, or from an India perspective, offshoring manufacturing outside of Asia into the US."

Following the capital infusion, Jubilant HollisterStier expects annual production to double from the current 50 million vials to 100 million vials after both expansion phases are complete.

Preti outlined, "This will bring an additional 50% of capacity in the US that is available now and then, the additional investment, totalling $300 million in all, will be actually completed by the end of fiscal year 2028, which will bring on another 50% of additional capacity."

"Each unit is around five patient doses. So this is approximately 350 million patient doses out there... almost the entire US population will receive a dose of a medicine or a vaccine that was manufactured from a Spokane facility," he added.