CDMO Hovione has announced that it issued a $50 million bond, arranged and subscribed by Banco BPI, that is set to mature in 2033 in order to finance an expansion of its production capacity. The company has previously discussed recently completed and planned expansions of its manufacturing facilities in Portugal, Ireland, and the US, including the addition of dry powder inhaler production capacity.
Hovione CFO António Almeida explained that, “we issued this bond to strengthen our balance sheet as we embark in a new phase of significant capital expansion. We issued a USD denominated bond because the majority of our sales is in the USA.”
According to the company, the expansion is being undertaken in response to customer demand. The announcement notes that 4 of 59 drugs approved by the FDA last year were developed and manufactured by Hovione.
CEO Guy Villax added, “2019 is the year when we celebrate our 60th Anniversary and we are pleased that the market offers us good terms for a bond with a 15 years’ maturity. We are building a business for the long term.”
Read the Hovione press release.
