SOCMA Member Ash Stevens Plans $20 Million Expansion

SOCMA member company Ash Stevens, a Michigan-based pharmaceutical manufacturer, says it's embarking on a $20 million expansion project that will increase production by 50 to 80 percent and allow them to hire 50 workers.

Last year, company revenue grew by more than 50 percent to $20.5 million and executives are projecting annual sales to exceed $30 million over the next five years. President and CEO Stephen Munk attributes the company's success and sustained growth to its commitment to providing quality work, on time delivery and attentive client service.

The multi-year expansion project includes expanding the company's Riverview plant with new labs and reaction vessels. In addition to the Riverview project, Ash Stevens has research facility with labs in Detroit.

In a recent interview, Munk told Crain's Detroit Business that the reason for the expansion is twofold.

"Drug companies in the US are beginning to grow frustrated with (ingredient manufacturers) in China and India, where they have quality and delivery problems," Munk says. "There are opportunities for companies like ours to grow."

Additionally, he says large drug makers like Eli Lilly and Co are interested in outsourcing chemical development, creating business opportunities for companies like Ash Stevens.

"They think it is cost-effective to contact out active ingredients because it is extremely expensive to do what we do," Munk tells Crain's.

Munk says the company's commitment to quality pharmaceutical manufacturing has not only helped boost sales, but has led to recognition from industry peers. Last year, SOCMA presented Ash Stevens, who is ChemStewards® certified, with two awards for its commitment to performance improvement. The awards recognize the company’s achievements in planning and operations and employee training and engagement.

Munk says Ash Stevens is also increasing its participation in industry trade shows, like Chemspec Europe, which is taking place in Berlin this week.  Next week, Munk also plans to join 30 other chemical industry executives for SOCMA CONNECT’s Third Annual Washington Fly-In, to discuss key industry issues with congressional leaders.  Speaking as a business executive and a patient, Munk says he is concerned about effective oversight of Asian active pharmaceutical ingredient (API) producers and plans to discuss the issue with lawmakers. Since many generic APIs are made in Asia, he would like to see greater enforcement of current laws that require manufacturers to meet required standards and specifications.

(Image above: Dr. Stephen Munk and Dr. James Hamby of Ash Stevens in center accepting their 2009 Silver Performance Improvement Award from SOCMA)