After almost two years on the auction block, Novartis' ($NVS) manufacturing facility in Suffern, NY, is likely to be sold by the end of this winter as two developers vie for the property.
Andrew Merin, a broker with Cushman and Wakefield's Metropolitan Area Capital Markets Group, told The Journal News that buyers for the 160-acre site that once manufactured tablets, capsules, vials and inhalation products have been narrowed to two developers who are both considering industrial and commercial use that could include dividing the site for multiple tenants.
In 2014, the drugmaker announced it would close about 20 sites as part of a restructuring of its pharma division. The decision to close Suffern was in line with the company losing exclusivity on its patent for the blood-pressure drug Diovan, which had also seen a drop in demand.
The three parcels of land that make up the facility are estimated by a local government assessment to be worth about $70 million.
Once employing more than 500 people, the plant currently has about 61 workers, who were recently told they will be let go sometime between March and September.
Novartis had set a target of 2017 to complete the closure and sale of the facility.
Last month, Novartis announced it was selling one of its French Alcon manufacturing plants to Swedish contract manufacturer Recipharm for €18 million ($19.7 million) as part of a deal that will allow Novartis to buy and market the eye meds made at the facility.
- see the Journal News story