Biogen to sell Denmark-based manufacturing site to FujiFilm for $890m

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Biogen, Fujifilm

Biogen (NSDQ:BIIB) said yesterday that it inked an $890 million deal to sell a Denmark-based manufacturing site to Fujifilm (TSE:4901).

The site, located in Hillerød, includes a biologics production facility with assembly, labeling and packing capabilities as well as quality control laboratories and warehouses, Cambridge, Mass.-based Biogen said. The facility also has approximately 800 employees who are expected to continue to work under Fujifilm.

“We continually evaluate our manufacturing strategy and we believe that this agreement serves the best interest of our employees, customers, partners and shareholders. As we continue to diversify our portfolio across multiple modalities and bring online our state-of-the-art manufacturing facility in Solothurn, Switzerland, we believe that we have enhanced our manufacturing capabilities and capacity for biologics with this transaction. Fujifilm is a well-respected leader in manufacturing biologic products and they share our pioneering culture,” CEO Michel Vounatsos said in a prepared statement.

As part of the deal, Biogen said it entered a manufacturing services agreement with Fujifilm, through which Fujifilm will produce commercial products for Biogen.

“We are proud to combine the talent and expertise of the Hillerød employees with Fujifilm’s capabilities as an industry-leading contract development and manufacturing organization. We will work with Fujifilm with the goal of ensuring a smooth transition and reliable supply for our customers and patients,” Biogen pharmaceutical operations and tech exec VP Paul McKenzie said in a press release.

Biogen said that it expects to record a total after-tax loss of between $130 million and $150 million during the first quarter related to the sale.

In a separate release, Fujifilm said that it expects to complete the acquisition by August.

“At Fujifilm, our goal has always been to bring new value to society, through innovation and the creation of new technologies, products and services. We are pleased to contribute to the growing healthcare industry through this investment. This significant investment demonstrates our continued commitment to grow the Bio CDMO Business and become an industry leader by combining resources of Biogen Hillerød and Fujifilm,” Fujifilm chair & CEO Shigetaka Komori said in a prepared release.

“We are so excited to welcome the Biogen Hillerød team into the Fujifilm Diosynth Biotechnologies family. These world-class facilities are rivalled only by the experience and capabilities of the Biogen Hillerød team with approximately 800 employees, and we look forward to leveraging these skills for the benefit of current and future customers,” Fujifilm Diosynth Biotechnologies CEO Steve Bagshaw said in prepared remarks.

The post Biogen to sell Denmark-based manufacturing site to FujiFilm for $890m appeared first on MassDevice.

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