Published on 06 Mar 2026
Xellia plans to expand Hungarian manufacturing to maintain European production of critical anti-infectives
Today, Xellia Pharmaceuticals announces the expansion plans of its manufacturing capabilities in Hungary. This is consistent with Xellia’s long-term strategy to continue its European production of anti-infective medicines the world depends on, despite operating in a fierce competitive landscape with intense price pressure and rising operational expenses.
Strengthening European activities within existing production network
Building on nearly three decades of operations in Hungary, Xellia intends to establish a new final-handling facility in Pest County, Szigetszentmiklós alongside its existing production site in Budapest.
The expansion is strategically linked to the ongoing investments in the Budapest facility and brings the total planned investment in Hungary to well above USD 100 million. Funding from Hungary will provide the foundation for Xellia’s continued operations in the country.
”Today’s announcement marks a significant milestone in our efforts and commitment to continue our production of life-saving medicines in Europe. Due to the highly competitive landscape, we have explored several locations for our future manufacturing – within and outside of Europe. We are pleased to have established the necessary support enabling us to continue some of our production lines of critical medicines within European territory,” says Michael Kocher, CEO of Xellia Pharmaceuticals.
While the investment in Hungary will enable Xellia to sustain some of their European manufacturing footprint, not all production lines can currently be secured due to fierce global competition.
“As one of the only European manufacturers of several critical anti-infective APIs, we have a responsibility to help build resilient supply chains in Europe,” continues Michael Kocher and adds: “but we still need additional funding if we want to secure critical pharmaceutical manufacturing capacities within Europe and at the same time run resilient operations”.
Higher quality standards and additional job creation
The new facility will focus on advanced final handling of non-beta-lactam antibiotics, incorporating state-of-the-art sterile and aseptic manufacturing capabilities. Final handling is a critical stage in pharmaceutical production, ensuring that API’s meet the highest standards of quality, safety, and regulatory compliance before delivery to partners and ultimately to patients.
The expansion is expected to create nearly 100 new positions across Xellia’s Hungarian operations. Today, more than 300 professionals work at Xellia’s Budapest site, contributing to biotechnology, chemistry, engineering, and quality disciplines that are essential to modern pharmaceutical manufacturing.
Next steps
Land acquisition for Xellia’s new facility in Pest County, Szigetszentmiklós has been completed, and the next phase of development will commence following final Hungarian approval of the agreed framework.
Over the coming years, the site is expected to progressively be expanded and upgraded. The first phase will focus on establishing the new final handling unit – a critical function in Xellia’s operations and future competitiveness.