Dive Brief:
- Bristol-Myers Squibb will sell its active pharmaceutical ingredient (API) manufacturing facility in Swords, Ireland to its long-time supplier and Korean biotech SK Biotek Co., Ltd.
- SK Biotek plans to run the plant, which has been used to manufacture Bristol-Myers and Pfizer's Eliquis (apixaban), as a stand-alone contract development manufacturing organization (CDMO). The two companies expect the deal to close in the fourth quarter after SK Biotek obtains certain permits.
- The Korean drugmaker will continue to manufacture the same active pharmaceutical ingredients now being produced at the Swords facility.
Dive Insight:
SK Biotek, a division of the South Korean conglomerate SK Group, touts itself as a leader in continuous flow process production up through commercial manufacturing. SK Group, like other large Korean firms such as Samsung, sees a growing opportunity in serving the needs of the pharmaceutical industry.
Unlike Samsung, however, which has invested more heavily in biologics production through its joint venture Samsung Bioepis, SK Biotek is expanding its reach in small molecule production.
The deal makes SK Biotek the first Korean company to invest in pharmaceutical manufacturing in Ireland, long a hot spot for drug production due to its favorable business climate and experienced workforce.
The company plans to add additional marketing and R&D staff to the Swords facility, as well as invest in upgrades for the plant — both of which should help it build a larger customer base.
Bristol-Myers, along with other large pharmas, is retooling its manufacturing footprint to focus more heavily on biologics production. Increased capacity in that area will come from the company's new biologics facility in Cruserath, Ireland, which it announced in 2014.
Financial terms of the deal were kept confidential by the companies.