A Medical Device Daily
Biogen Idec (Cambridge, Massachusetts) and Genentech (South San Francisco, California), reported an agreement for Genentech to purchase Biogen Idec’s NIMO (Oceanside, California) biologics manufacturing facility.Genentech will pay Biogen Idec roughly $408 million in cash for the 60-acre, 500,000 square-foot facility. The Oceanside plant, completed in December 2004, offers 90,000 liters of bioreactor capacity. “This acquisition will position us to improve delivery of life-extending and life-improving therapies to patients with unmet medical needs,” said Patrick Yang, PhD, Genentech’s senior vice president, product operations. “We expect the facility will play an important role in helping us deliver against our aggressive production plan. We view the Oceanside facility as a potentially unique and valuable asset, in terms of the manufacturing facilities, the added capacity and the addition of highly skilled employees who will join our team.” The transaction is subject to various closing conditions, with deal closing set for “as early as June 23.” Genentech said it expects biologic manufacturing of Avastin (bevacizumab) at the plant to commence in 2006 with FDA licensure anticipated in the first half of 2007. Employees currently at the facility are expected to be offered employment at Genentech or retained by Biogen. Of the roughly 430 employees at the Oceanside facility, about 330 will be offered employment by Genentech, and the company currently intends to hire an additional 200 employees at the facility by the end of 2006. Biogen Idec said it expects to incur charges in the range of about $50 million to $57 million, after income tax, in connection with the sale. Genentech makes multiple biotech products and licenses several other products to other companies.