Encap Announces $2M Capital Expenditure Programme
News Jul 04, 2012
Encap Drug Delivery has announced a $2 million capital expenditure programme to support its growing CMO activities.
Following the earlier expansion in 2008 when the company completed a $3 million investment involving an expansion of the Oakbank Park Way facility to provide two additional clean room suites including a High Potency facility and further expansion of its development laboratories, Encap is now providing new investment for additional high volume manufacturing equipment.
During the last 24 months Encap has experienced a 20% increase in sales of its Pharmaceutical Development Services (PDS) and commercial manufacturing (CMO) activities and is forecasting a similar rate of growth in 2012/14.
To compliment the growth plans Encap has committed a further $2 million of capital expenditure, buying the latest product mixing and capsule filling equipment, including a highly flexible Esco Labor (EL200) mixer and a high speed Bosch filling machine (GKF2500L) and weight checker (KKE2500).
Delivery of the new equipment will start August and will be completed by February 2013.
Encap’s Chief Executive Officer, Dr. Stephen Brown said “Encap has seen tremendous growth in its PDS business in the last 2 years with the initiation of more than 30 new Pharma client projects. We have also recently completed the launch of three new commercial pharmaceutical products in EU and North America for which we have signed commercial manufacturing contracts. Encap’s liquid fill and banding (sealing) technology is increasingly accepted as the sealing technology of choice for pharmaceutical products. We are seeing a growing interest in our commercial manufacturing capabilities and we have discussions progressing with a number of companies on their late stage Phase III products. Encap is investing to make sure that we have the best facilities and the most advanced manufacturing technology available to meet the needs of these new customers over the coming months and years. With the addition of this new equipment we are now capable of outputting over 6 million capsules per day”.