Genmab and
PDL BioPharma, Inc. have entered into an agreement under which Genmab will acquire PDL's antibody manufacturing facility in Brooklyn Park, MN, for $240 million in cash. The transaction includes land, equipment and access to a leased space with a development lab.
The facility has a production capacity of 22,000 liters, which the company expects will be sufficient to sustain both clinical and commercial scale material for its pipeline. The facility has two 1,000 liter and two 10,000 liter bioreactors, which support the simultaneous manufacture of multiple antibody products and will allow the company to transition three antibodies from research to manufacturing per year.
"Over the past few years Genmab has been preparing for the market launch of our late stage antibodies and we continue to build a broad pipeline of antibody products, which currently includes 10 products in clinical development. Consequently, the need to secure significant manufacturing capacity has become an increasing priority," stated Lisa N. Drakeman, Ph.D., chief executive officer of Genmab. "We believe that the new PDL manufacturing facility, with its complete antibody process development platform, represents our best option to secure manufacturing capacity, allowing Genmab to produce antibodies more efficiently and cost effectively while adding key manufacturing expertise to our capabilities we continue to build for a commercial future."
"We are pleased to enter into this agreement with Genmab, which we believe is the optimal transaction to fully realize the value of our biologics manufacturing facility. Importantly, it also represents another step in delivering on our commitment to maximize the value of PDL's assets for our stockholders, following on the recent sale of our commercial assets," said L. Patrick Gage, Ph.D., interim chief executive officer of PDL.
Following the acquisition, Genmab plans to retain approximately 170 employees currently working at the facility. As part of the transaction, under a clinical supply agreement, Genmab will produce clinical material to supply PDL's investigational studies for certain PDL pipeline products.
Genmab's Torben Lund-Hansen, Ph.D. will serve as president of the manufacturing facility. Dr. Lund-Hansen has served as vice president, head of manufacturing at Genmab since 2002. Previously, he was responsible for establishing manufacturing facilities for Novo Nordisk.
The transaction, subject to customary closing conditions, is expected to close by the end of 1Q2008.
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