JAMP Pharma has agreed to purchase a mothballed 100,000-square-foot biomanufacturing facility in the Quebec City area.

The seller, Pharmalab, closed the Lévis, Que., location in August 2023. The sale is subject to Superior Court of Quebec approval and other customary closing conditions, said JAMP in a news release. Financial terms were not disclosed.

“JAMP Pharma Group is proud to acquire and relaunch the manufacturing operations of this plant at a time when governments, customers, and partners are calling for more local procurement solutions,” said JAMP. “Currently, only 12% of pharmaceutical products consumed by Canadians are made domestically. This acquisition thus strengthens the Canadian supply chain and contributes to addressing drug shortages, an issue that was particularly highlighted during the pandemic.”

Boucherville, Que.-based JAMP said the acquisition will enable the company to repatriate tablet, capsule, oral-liquid and oral-powder production to Canada. The firm added that it plans to make substantial investments in pharmaceutical research and development to bring new product formulations to market and ensure the continuous supply of several new generic drug products.

With the acquisition, JAMP becomes one of the largest Canadian-owned pharmaceutical companies, said President and CEO Louis Pilon.

The company’s backers include Montreal-based institutional investor Fonds de solidarité FTQ.

Photo: CNW Group/JAMP Pharma Group