Delpharm Gets $60M Federal Investment to Modernize its Manufacturing Facility

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Delpharm’s decision to modernize its Boucherville, Quebec, manufacturing facility is a strategic move to strengthen Canada’s pharmaceutical sector. Backed by a $60 million investment from the federal government, the initiative highlights the country’s focus on pharmaceutical self-sufficiency, job preservation and regulatory compliance.

The modernization is part of a broader push to reinforce Canada’s biomanufacturing capacity. Increasing local production of sterile injectables and other critical medicines will improve supply chain resilience and ensure access to essential health products.

Announced in March 2024, the investment will enhance Delpharm’s competitiveness globally. The company, which acquired the Boucherville site from Sandoz in 2023, plans to replace 95 percent of the existing manufacturing equipment and install new filling lines while keeping operations running. The outcome will be a more efficient facility aligned with Health Canada’s updated standards.

The investment details reveal the scale of Delpharm’s transformation

The $200 million investment—including $60 million from the federal government—will transform Delpharm’s Boucherville facility into a leading site for sterile injectable manufacturing.

The project involves installing advanced production lines, overhauling outdated infrastructure and integrating automated systems that meet current Good Manufacturing Practices. These upgrades will allow Delpharm to increase output, minimize waste and improve product traceability.

The modernization is also designed to build long-term flexibility. Once complete, the facility will be equipped to respond to public health demands—an ability that proved essential during the pandemic. Delpharm’s leadership emphasized that the investment is about more than capacity; it’s about building resilience into operations.

In addition to equipment, Delpharm is investing in its workforce. The project will preserve more than 500 jobs, while technical training and automation skills development will ensure the company stays competitive.

Delpharm’s expansion secures jobs and energizes Quebec’s economy

Delpharm’s investment secures employment and economic stability in Quebec. The Boucherville site currently employs more than 500 people, and those jobs will remain intact throughout the multi-year modernization.

The company’s commitment is a strong signal to the regional labor market. While automation has caused workforce reductions elsewhere, Delpharm is investing in upskilling to match modern manufacturing needs. The company also expects to hire additional staff in compliance, engineering and quality control as production increases.

Beyond direct employment, the project benefits local businesses through procurement contracts and support services. From equipment suppliers to construction firms, the economic impact extends beyond the facility’s gates.

Quebec’s government has positioned the province as a life sciences hub. With strong research institutions and a growing concentration of biopharma companies, the region is an attractive location for health care manufacturing.

A decade-long agreement with Sandoz reinforces production certainty

Delpharm has secured a 10-year supply agreement with Sandoz Canada, guaranteeing the continued production of sterile injectables. The contract builds on their existing relationship and reflects confidence in the Boucherville site’s long-term capabilities.

The agreement offers benefits on both sides. For Sandoz, it ensures a stable supply of essential medicines. For Delpharm, it creates predictable demand, reduces operational risk and supports the case for large-scale investment.

It also enables more efficient production planning. With guaranteed volumes over a decade, Delpharm can manage inventory, staffing and capacity expansion with greater precision.

The partnership provides stability amid global supply disruptions. Shipping delays, material shortages and changing regulatory environments have increased unpredictability. A long-term domestic contract helps protect against those variables.

Delpharm’s project is part of a national shift toward pharmaceutical resilience. The federal government’s $60 million investment supports a broader effort to rebuild domestic manufacturing capacity and reduce foreign dependency. Canada’s Biomanufacturing and Life Sciences Strategy has steered significant funding toward this goal.

Sources:

• Canadian Manufacturing
• Government of Canada