Pfizer Plans Manufacturing Investment in Ireland; Alkermes Secures Supply Pact
In separate deals, Pfizer announced an investment at its manufacturing facilities in Ireland, and the biopharmaceutical company Alkermes announced a multiyear, multimillion manufacturing supply agreement. Pfizer plans to invest EUR 145 million ($200 million) in its Grange Castle biotech-manufacturing site, according to a press release from Industrial Development Agency (IDA) Ireland on Sep. 20, 2011. The facility is one of the largest biotechnology manufacturing sites in the world and produces two Pfizer blockbusters, the arthritis and psoriasis drug Enbrel (etanercept) and the vaccine Prevanar 13 (pneumococcal 13-valent conjugate vaccine (diphtheria CRM197 protein)). The investment will enable the addition of two new processing suites and the expansion of current production and product-testing capabilities.
“With pharmaceutical and chemical products accounting for over 50% of Irish exports and a long history in pharmaceutical excellence, Ireland is a prime location for this major investment. The Grange Castle project is a strategic initiative that will allow us to further align and strengthen our manufacturing and supply network in an environment that is continually focused on quality, flexibility and application,” said Frank D’Amelio, executive vice-president and CFO of Pfizer, in the IDA press release.
Meanwhile, completion of the merger between Alkermes and Elan Drug Technologies (EDT) was announced in a press release on Sept. 16, 2011 following the approval by Alkermes shareholders on Sept. 8, 2011. The businesses were combined under the new name of Alkermes plc, which will be headquartered in Dublin. “We are very excited about the creation of Alkermes plc—a unique, global, diversified company and a leader in CNS medications,” stated Richard Pops, CEO of Alkermes plc, in the company press release. The new company, including its headquarters and operations in Athlone, County Westmeath, has more than 450 employees based in Ireland as well as more than 1200 employees worldwide.
Alkermes also announced a multiyear, multimillion dollar manufacturing agreement with an undisclosed top-ten pharmaceutical company. Under the terms of the agreement, Alkermes will manufacture the company’s finished pharmaceutical product, which will be produced at Alkermes’ Athlone, Ireland facility. Alkermes expects this agreement to generate $15 million to $20 million in annual manufacturing revenues by 2016. The Athlone facility is one of three major manufacturing plants owned by Alkermes plc at which the company produces proprietary, partnered, and contract-manufactured drug products.
March 2011
Approximately 280 roles preserved as company intends to retain employees and expand the capability of the site over time
As we expand internationally, the Dublin site will help us deliver a growing supply of Amgen medicines for patients worldwide. We are impressed with the technical expertise and commitment to excellence demonstrated by the employees who work at the Dun Laoghaire site and look forward to welcoming them to Amgen’s global manufacturing team.
Madhu Balachandran, senior vice president, Amgen Manufacturing
Dublin, Ireland (March 11, 2011) - Amgen Inc. and Pfizer Inc. today announced that they have signed an agreement for the sale of Pfizer’s manufacturing facility located at Dun Laoghaire, County Dublin to Amgen. The transaction is expected to close in the second quarter of this year.
The Pfizer facility is a 37,000 square-meter aseptic operations facility with freeze dry product and liquid vial filling operations. The transaction anticipates that the majority of the employees at the site (approximately 240) will transfer their employment to Amgen and Pfizer will consult with transferring colleagues in relation to the implications of the transfer for them. A smaller group (about 40) will remain employed by Pfizer as part of the terms of the agreement.
“As we expand internationally, the Dublin site will help us deliver a growing supply of Amgen medicines for patients worldwide,” said Madhu Balachandran, senior vice president, Amgen Manufacturing. “We are impressed with the technical expertise and commitment to excellence demonstrated by the employees who work at the Dun Laoghaire site and look forward to welcoming them to Amgen’s global manufacturing team.”
Balachandran continued, “We are grateful to the Irish government and IDA Ireland for their support in helping us secure this world-class facility and look forward to a strong, productive relationship in the years ahead.”
Welcoming the announcement, Dr Paul Duffy, Vice President Primary Care, Pfizer Global Supply said, “This is a good day for colleagues and for Ireland Inc. as it proves we remain an attractive location for high calibre investment. We worked determinedly with IDA Ireland to sell the Dublin facility in order that employment could be retained and I wish to thank colleagues for their continued commitment throughout the process. We continue to actively engage in exploring opportunities to divest our Loughbeg and Shanbally plants in Cork and remain focused on delivering successful outcomes.”
Under terms of the agreement, Amgen will manufacture Pfizer’s products at the facility for an interim period and Pfizer will lease a portion of the facility from Amgen for an interim period. Amgen intends to develop the capability to formulate and fill its biological products at the site and expand the manufacturing capabilities there over time.
Commenting on the announcement by Amgen to take over the Pfizer facility in Dun Laoghaire, Barry O’Leary, CEO of IDA Ireland said, “This investment by Amgen, the largest biotechnology company in the world, gives a substantial boost to Ireland’s Life Sciences sector. Today’s announcement represents a significant win for Ireland due to Amgen’s leading position in the industry and the strategic nature of the proposed development for the company.”
“The retention of the 240 jobs by Amgen and the 40 staff who will remain employed by Pfizer, in Dun Laoghaire, is also very welcome news for staff and management here and is testament to the hard work and dedication with which they continued to operate this facility during a difficult and uncertain period. I wish all parties involved every success with this acquisition and to offer the full support of IDA Ireland to Amgen as it develops its operations here in Ireland.”
Amgen has conducted commercial operations in Ireland since 2000 and employs about 25 staff members at its offices in North County Dublin.
About Amgen
Amgen discovers, develops, manufactures, and delivers innovative human therapeutics. A biotechnology pioneer since 1980, Amgen was one of the first companies to realize the new science’s promise by bringing safe, effective medicines from lab to manufacturing plant to patient. Amgen therapeutics have changed the practice of medicine, helping millions of people around the world in the fight against cancer, kidney disease, rheumatoid arthritis, bone disease, and other serious illnesses. With a deep and broad pipeline of potential new medicines, Amgen remains committed to advancing science to dramatically improve people’s lives. To learn more about our pioneering science and vital medicines, visit www.amgen.com.
Forward-Looking Statements
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