BioMarin to Buy Pfizer Plant
Zacks Equity Research reports that BioMarin Pharmaceutical Inc.will acquire an integrated biologics manufacturing plant from Pfizer Inc., which will expand its manufacturing capacity to manage its product portfolio and its maturing pipeline. The plant, for which BioMarin will pay $48.5 million, is located in Shanbally, Cork, Ireland and is spread across 133,000 square feet. The purchase price is almost five times less than the cost of building a new facility. BioMarin is expected to close the deal in the third quarter of 2011. Moreover, BioMarin will have to spend approximately $4 million annually to maintain the facility. The current manufacturing facilities have the capacity to manufacture protein products worth roughly $1 billion in revenue. With a maturing pipeline, the company will need additional resources to carry out its production activities. The acquisition of the Shanbally facility not only expands manufacturing capacity for BioMarin, it also diversifies manufacturing risk for BioMarin over two production facilities located in separate geographical locations. The company’s other manufacturing facility located at Novato, Calif., will continue to be used for producing its currently marketed drugs Naglazyme and Aldurazyme along with several clinical products.