Jubilant HollisterStier's $300M Bet to Boost US Sterile Injectable Capacity

Jubilant HollisterStier LLC, a part of Jubilant Pharmova Ltd, is set to invest $300 million by FY28 to double its injectable manufacturing in the US. The initiative is spurred by the demand-supply gap in sterile vials and accelerated by Trump's tariffs, according to CEO Chris Preti.

Jubilant HollisterStier LLC, a subsidiary of Jubilant Pharmova Ltd, has announced a major investment of $300 million by the fiscal year 2028, aimed at doubling its sterile injectable manufacturing capacity in the United States. The decision comes in response to the existing demand-supply gap in the market and was further accelerated by the tariffs imposed during the Trump administration, as stated by Chris Preti, CEO of CDMO Sterile Injectables.

This significant investment will unfold in two phases, beginning with the third sterile fill and finish line at their Spokane, Washington facility, a project that has already consumed $132 million. The enhanced capacity will allow the company to produce approximately 100 million vials annually upon completion of both phases, compared to the current output of 50 million units annually, Preti detailed.

Driven by the need to strengthen the supply chain and meet market demands, Jubilant's strategic move aims to address a 700 million-unit shortfall in sterile vial availability, as highlighted by a McKinsey study. The expansion is also underpinned by a $150 million grant from the US government, designed to enable the company to meet its ambitious growth goals in the sector.

(With inputs from agencies.)