Item 2. Properties
Item 2. Properties.
Our manufacturing facilities are located in Rancho Cucamonga and South El Monte, California; Canton, Massachusetts; Éragny-sur-Epte, France; and Nanjing, China. We own or lease a total of 60 buildings at six locations in the U.S., France and China, that comprise 1.9 million square feet of manufacturing, research and development, distribution, packaging, laboratory, office and warehouse space. Our facilities are regularly inspected by the FDA in connection with our product approvals, and we believe that all of our facilities are being operated in material compliance with the FDA’s cGMP regulations.
We continue to expand our facility in Nanjing, China and expect further significant investment.
In April 2014, we acquired Merck’s API manufacturing business in Éragny-sur-Epte, France, which manufactures porcine insulin API and recombinant human insulin API, and expect to continue the current site activities.
The following table provides a summary of our owned properties as of December 31, 2020:
Aggregate
Facility Size
Location
(in square feet)
Primary Use
Segment
Rancho Cucamonga, CA
267,674
Headquarters, research and development, laboratories, manufacturing, packaging, warehousing and administrative offices
Finished pharmaceutical products
Éragny-sur-Epte, France
251,983
Manufacturing, laboratories, warehousing and administrative offices
API
Canton, MA
251,750
Manufacturing, packaging, warehousing, distribution and administrative offices
Finished pharmaceutical products
Nanjing, China
405,951
Manufacturing, procurement, research and development, warehousing, and administrative offices
Finished pharmaceutical products
Chino, CA
57,968
Research and development, and laboratories
Finished pharmaceutical products
South El Monte, CA
21,200
Manufacturing
Finished pharmaceutical products
The properties leased by us have expiration dates ranging from 2021 to 2030 (including certain renewal options). The following table provides a summary of our leased properties:
Aggregate
Facility Size
Location
(in square feet)
Primary Use
Segment
Nanjing, China
153,877
Manufacturing, laboratories and administrative offices
Finished pharmaceutical products
Rancho Cucamonga, CA
180,019
Warehousing, distribution and administrative offices
Finished pharmaceutical products
South El Monte, CA
312,158
Manufacturing, packaging, warehousing, distribution and administrative offices
Finished pharmaceutical products
We believe that our current manufacturing capacity is adequate for the near term. We have in the past approached capacity at one of our facilities largely as a result of the FDA’s request that we reintroduce certain previously discontinued products to help cope with a nationwide shortage of these products. We believe that these capacity issues have been ameliorated as a result of certain other manufacturers re-entering the market and increasing the production of the products that were subject to the shortage.
Item 3. Legal Proceedings.
The disclosure under Note 20 of the Notes to the Consolidated Financial Statements included elsewhere in this report is incorporated by reference in this Part I, Item 3.
76
Table of Contents
Item 4. Mine Safety Disclosures.
Not applicable.
77
Table of Contents
PART II