Article

ePT--the Electronic Newsletter of Pharmaceutical Technology

Cambrex Sells Two Segments and Two Facilities

Cambrex Corp. signed a definitive stock-purchase agreement to sell two of its human-health facilities to a holding company controlled by International Chemical Investors II S.A. (Frankfurt, Germany).

East Rutherford, NJ (Oct. 24 and Oct. 20)-Cambrex Corp. (www.cambrex.com) has agreed to sell its Bioproducts and Biopharma segments to Lonza Group AG (Basel, Switzerland, www.lonza.com) for $460 million in cash. Cambrex will use the proceeds of the sale to repay all outstanding debt and pay a special dividend to stockholders. The transaction is expected to close in 90–120 days, subject to regulatory and stockholder approval.

Cambrex's Bioproducts segment manufactures research, therapeutic, and analytical testing products for drug discovery and biotherapeutic manufacturing. The company's Biopharma business provides process-development services and contract manufacturing for therapeutic proteins, vaccines, and other biologic drugs. Cambrex's Human Health business offers products and services for the process development and manufacturing of active pharmaceutical ingredients, advanced pharmaceutical intermediates, and specialty intermediates.

Upon completion of the sale, Cambrex will restructure its Human Health business to use its resources efficiently. The company plans to reduce overhead by approximately $8 million per year.

In related news, Cambrex signed a definitive stock-purchase agreement to sell two of its human-health facilities to a holding company controlled by International Chemical Investors II S.A. (ICIG, Frankfurt, Germany, www.ic-investors.com).

The facilities (located in Cork, Ireland and Landen, Belgium) manufacture small-molecule active pharmaceutical ingredients (APIs) and advanced intermediates. Cambrex sold the sites to streamline its human-health segment and now will invest in its three largest facilities, which specialize in high-potency manufacturing, taste masking, controlled substances, and generic APIs.

The sale of the two facilities is expected to close within 30 days, and Cambrex hopes to report a $30-million noncash charge in the fourth quarter of 2006 as a result of this transaction.

Newsletter

Get the essential updates shaping the future of pharma manufacturing and compliance—subscribe today to Pharmaceutical Technology and never miss a breakthrough.

Related Videos
A global supply chain map, visualizing the complex network of transportation routes and distribution centers | Image Credit: © venusvi - stock.adobe.com
Shortcut from point A to point B | Image Credit: © Olivier Le Moal - stock.adobe.com
Behind the Headlines, Episode 21: Waters-BD Merger, Merck’s $10B Bet, and Biotech’s Investment Frontiers
Wooden blocks spelling TARIFFS are placed on a map of North America, specifically over the United States and Mexico | Image Credit: © Rokas - stock.adobe.com
Jason Waite, International Trade Expert, Alston & Bird
Simona Guidi, Associate Director, ProPharma
Tore Bergsteiner
Behind the Headlines, Episode 20: CAR-T Milestones, Abbvie and Eli Lilly M&A Moves, and More
Related Content