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Released June 17, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--GlaxoSmithKline (NYSE:GSK) (GSK) (Brentford, England) has agreed to sell its pharmaceutical manufacturing plant in Cork, Ireland, to U.S. company Thermo Fisher Scientific Incorporated (NYSE:TMO) (Waltham, Massachusetts) for 90 million euro ($102 million).
The site, which produces the active ingredients for nine of GSK's medicines, including treatments for cancer, depression and Parkinson's disease, employs 400 commercial manufacturing and research and development (R&D) employees, who will now transfer to Thermo Fisher. The new owner plans to expand plant capacity for the development and commercial manufacturing of complex active pharmaceutical ingredients (APIs). It will continue to produce APIs for GSK under a multi-year supply agreement and plans to expand use of the site to produce complex APIs for other customers as well. The site contains 270 cubic meters of reactor capacity, 10 production buildings, an R&D pilot plant and lab infrastructure to support process development, scale-up and physical characterisation of APIs.
Thermo Fisher is a contract development and manufacturing organization (CDMO) for the pharmaceutical industry, with services ranging from drug development to clinical trials to commercial manufacturing for pharma and biotech companies. In March, Industrial Info reported that the company was acquiring Brammer Bio, a viral vector contract development and manufacturing organization for gene therapy innovators for $1.7 billion.
GSK Cork Site Director Mike O'Sullivan said: "Due to strategic changes in the GSK portfolio and emerging pipeline, the Cork site had been significantly underutilised and it became clear that the site was no longer a competitive fit within GSK's manufacturing network. As well as providing immediate certainty, furthermore, we believe the sale will leave the site well positioned for future growth and development. GSK has been in Cork for more than 40 years, so we recognise that today is a significant day for everyone at the site."
This is the second Irish plant that GSK is offloading. Last August, Industrial Info reported its planned closure of the skin care Stiefel Laboratories plant in Sligo, in western Ireland with the loss 165 jobs. The plant made skin healthcare products including Physiogel, Oilatum and Driclor for more than 65 markets. For additional information, see August 29, 2018, article - GlaxoSmithKline Shutting Irish Skincare Plant.
Commenting on the Cork deal, Michel Lagarde, senior vice president and president of Pharma Services for Thermo Fisher Scientific, said: "The GSK Cork site will enhance our API offering by expanding our development and commercial capabilities to provide much-needed capacity for APIs currently in development."
The company also is investing $150 million to expand its sterile fill-finish sites in Monza and Ferentino, Italy, and Greenville, North Carolina. It also plans to complete the previously announced $50 million expansion of its St. Louis, Missouri, biologics facility later this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The site, which produces the active ingredients for nine of GSK's medicines, including treatments for cancer, depression and Parkinson's disease, employs 400 commercial manufacturing and research and development (R&D) employees, who will now transfer to Thermo Fisher. The new owner plans to expand plant capacity for the development and commercial manufacturing of complex active pharmaceutical ingredients (APIs). It will continue to produce APIs for GSK under a multi-year supply agreement and plans to expand use of the site to produce complex APIs for other customers as well. The site contains 270 cubic meters of reactor capacity, 10 production buildings, an R&D pilot plant and lab infrastructure to support process development, scale-up and physical characterisation of APIs.
Thermo Fisher is a contract development and manufacturing organization (CDMO) for the pharmaceutical industry, with services ranging from drug development to clinical trials to commercial manufacturing for pharma and biotech companies. In March, Industrial Info reported that the company was acquiring Brammer Bio, a viral vector contract development and manufacturing organization for gene therapy innovators for $1.7 billion.
GSK Cork Site Director Mike O'Sullivan said: "Due to strategic changes in the GSK portfolio and emerging pipeline, the Cork site had been significantly underutilised and it became clear that the site was no longer a competitive fit within GSK's manufacturing network. As well as providing immediate certainty, furthermore, we believe the sale will leave the site well positioned for future growth and development. GSK has been in Cork for more than 40 years, so we recognise that today is a significant day for everyone at the site."
This is the second Irish plant that GSK is offloading. Last August, Industrial Info reported its planned closure of the skin care Stiefel Laboratories plant in Sligo, in western Ireland with the loss 165 jobs. The plant made skin healthcare products including Physiogel, Oilatum and Driclor for more than 65 markets. For additional information, see August 29, 2018, article - GlaxoSmithKline Shutting Irish Skincare Plant.
Commenting on the Cork deal, Michel Lagarde, senior vice president and president of Pharma Services for Thermo Fisher Scientific, said: "The GSK Cork site will enhance our API offering by expanding our development and commercial capabilities to provide much-needed capacity for APIs currently in development."
The company also is investing $150 million to expand its sterile fill-finish sites in Monza and Ferentino, Italy, and Greenville, North Carolina. It also plans to complete the previously announced $50 million expansion of its St. Louis, Missouri, biologics facility later this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
