Mergers, acquisitions, and restructuring - Pharmaceutical Technology

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Mergers, acquisitions, and restructuring
A roundup of company moves and positioning from the pharmaceutical and biotechnology industries and contract service providers.

PTSM: Pharmaceutical Technology Sourcing and Management
Volume 3, Issue 10

As part of the transaction, which was announced in March 2007, Novartis transferred manufacturing responsibility for Betaseron to Bayer and received a total payment of roughly $200 million for the transfer of production equipment, inventory, and the leasing of buildings at the site.

Bayer will pay Novartis royalties on the net sales of Betaseron manufactured at the Emeryville facilities until the original regulatory filing, development, and supply agreement expires in October 2008.

Bayer will help Novartis submit a regulatory filing for the latter's 250-μg version of interferon beta-1b. If Novartis's drug is approved, Bayer will manufacture the product for Novartis from 2009 onward. In return, Novartis will make royalty payments to Bayer.

Sandwich, UK (Sept. 11)—Pfizer (New York) plans to cease all remaining manufacturing operations at its facility in Sandwich, Kent, United Kingdom. The closure will result in the loss of approximately 420 jobs, phased over the next two years, according to a company release.

The move is part of Pfizer's ongoing efforts to consolidate worldwide manufacturing operations to manage global capacity and demand more efficiently, as well as establish a smaller and more flexible cost base, the company specified.

The Sandwich facility manufactures active pharmaceutical ingredients (APIs) for human and veterinary drugs. Also located at Sandwich are a bioprocess development group, which develops new processes for the manufacture of pharmaceuticals using living (biological) systems, and a process analytical support group, which develops technologies to improve process understanding and control within Pfizer's plants.

A small API development function, comprising around 10–15 roles, will remain at Sandwich to support the development of regulatory starting materials. Site infrastructure services (e.g., provision of utilities and waste management) will also continue at Sandwich.

In January 2005, Pfizer announced a rationalization of manufacturing at Sandwich, which scaled down manufacturing activity at the site to API manufacture only.

Cambridge, MA and Carlsbad, CA (Sept. 7)—Alnylam Pharmaceuticals and Isis Pharmaceuticals launched Regulus Therapeutics, a joint venture focused on the discovery, development, and commercialization of microRNA therapeutics. Regulus will combine the strengths and assets of Isis's and Alnylam's technologies, intellectual property, and leadership.


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Source: PTSM: Pharmaceutical Technology Sourcing and Management,
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