Piramal / Pfizer Morpeth UK

Following its acquisitions of Warner-Lambert and Pharmacia, Pfizer Inc. determined that its manufacturing operations in Morpeth, UK were no longer required within its consolidated plant network. Pfizer retained PharmaBioSource in 2005 as consultant and broker to lead the divestiture. The 35-year-old site sat on 50 acres and had grown into a complex operation comprising four independent chemical plants producing active pharmaceutical ingredients, three operating areas manufacturing solid dosage forms with capsule capability, integrated blister packaging with limited bottle-packing capability, and a warehousing and distribution operation serving over 100 global markets. The site was projected to employ approximately 450 colleagues in its first year under new ownership and to generate approximately £16 million in trailing supply revenue from Pfizer in the first full year post-close, under supply agreements ranging from three to six years.

PharmaBioSource worked in close coordination with PricewaterhouseCoopers (PwC) to develop the marketing strategy, target list of prospective buyers, and value proposition designed to attract the operators Pfizer sought as buyers. We drew on our consulting and advisory experience to partner with Pfizer and PwC through positioning, marketing, and negotiation.

Services provided by PharmaBioSource:

• Business and site assessments
• Value proposition development
• Prep for sale
• Marketing collateral
• Target identification and marketing
• Valuation
• Benchmarking
• Contract documents
• Deal structure and negotiations
• Closing

Pfizer sold the Morpeth site to Nicholas Piramal India Ltd. (NPIL), now Piramal Group — a respected Indian generic drug manufacturer — in less than one year from initial engagement. The buyer committed to the future success of the site, its employees, and the community, and provided Pfizer with the confidence that its trailing supply requirements would be fulfilled in a high-quality, timely, and cost-effective manner.