Recipharm continues to expand its manufacturing footprint by announcing it has agreed to buy Flamel's ($FLML) Pessac, France, facility for €10.6 million ($13.2 million). It's the third time this year the Swedish contract developer has made such a move.
In a separate transaction, Recipharm said it's investing €10.5 million ($13.1 million) in Flamel stock at a purchase price equal to the trailing 20-day average price.
Currently, the Pessac facility, which employs about 115 people, isn't being used for the production of Flamel's finished products, though it intends to continue to outsource to third party contract manufacturing, the company said in a press release.
|Flamel CEO Mike Anderson|
"This sale allows us to continue development of our proprietary products using our current drug delivery technologies at the Pessac facility and the option to utilize Recipharm's commercial manufacturing capabilities elsewhere," Mike Anderson, chief executive of Flamel, said in a statement.
Under the terms of the deal, Recipharm gets the royalty contract for Coreg CR with GlaxoSmithKline ($GSK), as well as an option to approach Flamel for rights of products that Flamel plans to license for sale in Europe. Additionally, Flamel agreed to negotiate a contract with Recipharm under which the latter will incorporate Flamel's drug delivery technologies into its contract development business.
Flamel will also enter into a 5-year service agreement with Recipharm. The sale is expected to be completed by the end of the year.
In early November, Recipharm made a €112.3 million ($140 million) cash and stock deal to buy Portuguese contract manufacturer and developer Lusomedicamenta Sociedade Técnica Farmacêutica. This summer, it paid $164.5 million to buy Milan-based Corvette Pharmaceutical Services Group from the Italian private equity Group LBO Italia Investimenti.
- read the release (PDF)