Merck & Co. Inc., (operating in the United Kingdom as MSD) and Avecia
Investments Limited today announced that they have entered into a
definitive agreement by which Merck will acquire the biologics business
of the Avecia group through a Merck affiliate (Merck Sharp & Dohme
(Holdings) Limited or "MSD"). Avecia Biologics is a contract
manufacturing organization with specific expertise in microbial-derived
biologics. Financial details of the transaction were not disclosed.
"At Merck we continue to execute on our strategy of expanding our
biopharmaceutical expertise and manufacturing capacity," said John T.
McCubbins, senior vice president, Biologics and Therapeutic Protein
Operations, Merck Manufacturing Division. "This transaction follows an
initial strategic development and supply relationship with Avecia
Biologics and will provide us with an operational facility staffed by an
experienced workforce that is highly skilled in a broad portfolio of
bioprocess systems."
Under the terms of the agreement, Merck will acquire Avecia Biologics
Limited and all its assets, including all the company's process
development and scale-up, manufacturing, quality and business support
operations located in Billingham, UK. In addition to honoring all Avecia
Biologics contractual commitments, Merck plans to engage in discussions
with individual customers relating to their specific ongoing and future
biological process development and manufacturing needs after the
transaction is closed.
"Over the past ten years, Avecia Biologics has built and established an
enviable reputation for bioprocess development and timely delivery of
quality biopharmaceutical ingredients for our customers," said Steve
Bagshaw, president, Avecia Biologics. “This acquisition recognizes these
successes and now provides the exciting opportunity to focus on
advancing Merck's broad early and mid-stage portfolio of biologic
candidates."
Closing of the transaction is subject to regulatory approval, as well as
other customary closing conditions. The Oligomedicines Business of the
Avecia group based in the United States does not form part of this
transaction.