The acquisition will help Thermo Fisher expand its capacity and meet demands for complex APIs.
U.S. biotechnology firm, Thermo Fisher Scientific Inc. has recently announced that it has entered into a definitive agreement with British pharmaceutical firm, GlaxoSmithKline plc (GSK) to acquire its drug substance manufacturing site in Cork, Ireland for about €90 million.
According to reliable sources, the acquisition is anticipated to help Thermo Fisher expand its capacity to meet customer demand for the development and commercial production of complex active pharmaceutical ingredients (APIs). Moreover, the firm expects the GSK site, with over 400 employees, to help produce highly specialized APIs for treating diseases like Parkinson’s, childhood cancer and depression.
Reportedly, the site contains a reactor capacity of about 270 cubic meters, an R&D testing plant, 10 manufacturing buildings and a lab infrastructure to support process development, scale-up and physical characterization of APIs.
The biotechnology company will also continue to develop APIs for GSK under a multi-year supply agreement and further plans to expand the site’s capacity to develop complex APIs for other customers as well, cite sources.
Speaking on the move, Michel Lagarde, President & Senior VP, Pharma Services, Thermo Fisher Scientific, said that the GSK Cork site will help their firm enhance its API offering by expanding its development and commercial capabilities to offer required capacity for APIs currently under development.
He said the transaction validates their firm’s strategy to build on a strong foundation by means of adding capacity and capabilities to its pharma services offering through a combination of capital investments and M&A.
Meanwhile, Mike O’Sullivan, Director, GSK Cork site, said that their firm expects this acquisition to offer a more sustainable future for their site and its highly talented employees. He said that the sale will leave its Ireland site well positioned for future growth and development.
According to reports, the GSK transaction, expected to be completed by end 2019, will be subject to customary closing conditions, along with regulatory approvals. Moreover, upon completion, the site will become part of Thermo Fisher’s pharma services unit within its laboratory services and products segment.