NEW YORK (AP) — Draxis Health Inc., maker of diagnostic and therapeutic products, said Wednesday its contract manufacturing division Draxis Pharma expanded its existing contract with Johnson & Johnson, which is worth $120 million.
The new, multiyear supply agreement to provide commercial manufacturing services for nonsterile specialty and semisolid products runs to the end of 2013.
It includes about two years of manufacturing site transfer and process validation activities followed by five years of commercial production scheduled to begin in 2009, Draxis said.
Commercial production is expected to generate incremental revenue of more than $120 million between 2009 and 2013. The transfer of equipment and production technologies is expected to generate revenue between $6 million and $8 million in 2007 and 2008.
The contract will result in the creation of between 80 and 100 new jobs in the Montreal area and also could be extended beyond 2013. The company expects to open a new facility in summer 2008.
