Recipharm AB and Flamel Technologies SA have entered into a long-term collaboration agreement under which Recipharm will purchase Flamel’s development and manufacturing facility in Pessac, France for €10.6 million plus working capital. The deal expands its pharmaceutical development capacity and technical capabilities to provide services to its customers in the region, including spray granulation and spray coating. The transaction is expected to close by the end of the year.
 
Recipharm will also provide development and manufacturing support to Flamel under a long-term services agreement. The partnership allows Flamel to retain access to the Pessac facility’s capabilities and provides access to Recipharm’s other facilities for the development or manufacture of their pipeline. Recipharm may also enter agreements with other companies and has an agreement providing royalty income. 
 
Additionally, the companies have agreed to negotiate a contract whereby Recipharm will incorporate Flamel’s drug delivery technologies into its contract development business, and Recipharm has an option to negotiate with Flamel for the European rights to any product that Flamel plans to license for sale in the European market.
 
The Pessac facility is located in Bordeaux, France and is GMP compliant (FDA and ANSM-approved) for the development and manufacture of pharmaceuticals. The facility manufactures Flamel’s Medusa and Micropump drug delivery technologies and is equipped with three spray-coating machines, warehousing, analytical and QC labs, and equipment for polymer synthesis.
 
Thomas Eldered, chief executive officer of Recipharm, said, “I am delighted that we are now entering into a strategic partnership with Flamel and taking over a first class development and manufacturing facility in France. Development services are in many respects a ‘local’ business so having another centre in addition to Sweden should allow us to increase this aspect of our business. The commitment we are both showing towards each other is a clear demonstration of the bright future we see for this relationship. We are looking forward to supporting Flamel to fulfill their ambitions to develop and manufacture new products based on their proprietary technology.”
 
Mike Anderson, chief executive officer of Flamel, added, “The sale of the Pessac facility frees us from the time-consuming task of running a contract development manufacturing facility. This sale allows us to continue development of our proprietary products using our current drug delivery technologies at the Pessac facility and the option to utilize Recipharm’s commercial manufacturing capabilities elsewhere. Given Recipharm’s expertise, the investment in Flamel’s stock is a welcome endorsement of Flamel’s anticipated success moving forward.”