North America’s Sole Manufacturer of MDR-TB Drugs Closing Its Doors

26 Apr 2010
by Working Group

This post originally appeared at

Purdue Chao Center
Purdue Chao Center

Purdue drug maker closing its doors after 5 years

Associated Press – April 27, 2010 4:14 AM ET

WEST LAFAYETTE, Ind. (AP) – An Indiana drug maker that’s North America’s sole manufacturer of a multidrug-resistant tuberculosis drug is closing its doors after five years.

The Purdue Research Foundation says the Chao Center for Industrial Pharmacy and Contract Manufacturing was unable to become self-sustaining in part because of the recession.

The center opened in 2005 at the Purdue Research Park. It reached an agreement with Eli Lilly and Co. in 2007 to become North America’s sole maker of the tuberculosis drug Seromycin. Now, it will cease operations in the coming months.

As part of a humanitarian effort, the center will continue making that drug and other lifesaving “legacy” drugs until new manufacturers can be found.

The center began with a $5 million gift from two Purdue graduates.

©2010 Associated Press. All Rights Reserved.

Below is the official press release from Purdue (source:

Purdue Research Park officials announce closing of Chao Center

April 23, 2010

WEST LAFAYETTE, Ind. – Purdue Research Park officials announced Friday (April 23) that the Chao Center for Industrial Pharmacy and Contract Manufacturing will discontinue operations in the coming months.

The center opened in 2005 through a $5 million gift from Purdue alumni Allen and Lee-Hwa Chao. The Chao Center is a pharmaceutical manufacturing facility that produces and distributes legacy and small-volume drugs.

As part of a humanitarian effort, the Chao Center will continue manufacturing and distributing the multidrug-resistant tuberculosis drug Seromycin® and other life-saving legacy drugs until new manufacturers are found. In 2007, through an agreement with Eli Lilly and Co., the Chao Center became the sole producer of Seromycin® for patients in North America.

Outplacement services for the 12 center employees will be provided. Transfers for employment opportunities at the Purdue Research Foundation also will be offered if comparable positions are available.

A new manufacturer of small-volume drug batches will be sought to move into the facility.

The main consideration behind the closing is that the Chao Center has not been able to become self-sustaining during its five-year operation. Contributing factors include the economic downturn and the challenges with producing small-volume drugs, according to Joseph B. Hornett, senior vice president, treasurer and COO of the Purdue Research Foundation.

Purdue Research Park media contact: Cynthia Sequin, 765-588-3340, 765-413-6031 (mobile),

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