Following the completion of its acquisitions of both Warner Lambert and Pharmacia, Pfizer Inc. concluded that its manufacturing facilities in Morpeth, UK, were no longer required in its plant network. Pfizer retained PharmaBioSource to serve as consultants and brokers to assist in the divestiture of the Morpeth operations.
At the time of PharmaBioSource’s engagement to support the divestiture (2005), the facility had been in operation for over 35 years and had grown to be a large and complex operation. Located on a land parcel of 50 acres, the facility was comprised of manufacturing units for both API and finished oral dosage forms with specialized facilities for both controlled substances and hormones. In addition, extensive laboratory facilities and an integrated distribution facility were also in place on the Morpeth campus. As such, the site was well-suited to become a stand-alone facility.
More specifically, at the time of sale, the Morpeth facility possessed the following capabilities:
At the time of the sale of the Morpeth operations, the site was projected to employ approximately 450 colleagues in the first year under new ownership and was projected to generate trailing supply agreement revenues of approximately £16M through sales of product to Pfizer in the first full year after the completion of the transaction, based on those supply agreements for a number of important products with durations ranging from three to six years.
To help achieve its goal of divesting the Morpeth operations, Pfizer engaged PharmaBioSource, working in close coordination with PricewaterhouseCoopers (PwC), in the development of the marketing strategy, a target list of prospective buyers and an assessment of the type of value proposition that would attract interest from the types of companies that Pfizer was seeking as potential buyers.
PharmaBioSource utilized its extensive experience in consulting and advisory services to partner with Pfizer and PwC, with the outcome being the successful sale of the facility to Nicholas Piramal India Ltd. (NPIL), now Piramal Group, a respected Indian generic drug manufacturer.
Services provided by the PharmaBioSource team:
In less than one year, Pfizer was able to complete the transaction with a company that was committed to the future success of the site, its employees and the community and one that provided Pfizer with the necessary level of comfort that its trailing supply needs would be fulfilled in a high quality, timely and cost-effective manner.
Shire plc. retained PharmBioSource, Inc. as its exclusive consultant to market and sell its 340,000 SF pharma / biotech manufacturing facility located in Krems, Austria.
Shire is a global biotechnology company focused on serving patients with rare diseases and other highly specialized conditions. The company’s products are available in more than 100 countries across core therapeutic areas including Hematology, Immunology, Neuroscience, Lysosomal Storage Disorders, Gastrointestinal / Internal Medicine / Endocrine and Hereditary Angioedema; a growing franchise in Oncology; and an emerging, innovative pipeline in Ophthalmics.As part of its manufacturing site network consolidation plan, Shire made the strategic decision to divest its pharma / biotech manufacturing site located near Vienna that it had acquired from Baxalta in 2015.
The facility represented an excellent opportunity for a buyer to acquire a significant utility-ready pharmaceutical and biotech manufacturing asset at a discount and with a significant reduction in time to market.
To assist Shire with its goal of divesting its Krems, Austria manufacturing site, PharmaBioSource engaged the pharmaceutical and biotech industry to market and sell the site to a strategic acquirer.
We utilized our technical expertise and extensive contacts within the Life Sciences Industry to identify a number of potential buyers for the Krems site.
Services provided by the PharmaBioSource team:
PharmaBioSource, Inc. solicited multiple offers for the Shire site and ultimately identified the acquirer to be Merck Animal Health, the global animal health business unit of MSD, which offers veterinarians, farmers, pet owners and governments one of the widest range of veterinary pharmaceuticals, vaccines and health management solutions and services. The transaction represented a significant value for Shire and the entire deal was completed in just 9 months.