Genmab to buy PDL BioPharma's antibody manufacturing facility
Danish biotech company Genmab has entered into an agreement with US-based PDL BioPharma to acquire PDL's antibody manufacturing facility located in Brooklyn Park, Minnesota, for US$240m (Euro 162m) in cash. The transaction also includes land, equipment and access to a leased space housing a development lab.
Danish biotech company Genmab has entered into an agreement with US-based PDL BioPharma to acquire PDL's antibody manufacturing facility located in Brooklyn Park, Minnesota, for US$240m (Euro 162m) in cash. The transaction also includes land, equipment and access to a leased space housing a development lab.
Genmab expects that the facility, which has a production capacity of 22,000 litres, will be sufficient to provide a sustainable source of both clinical and commercial scale material for its pipeline. The two 1,000-litre and two 10,000-litre bioreactors, which support the simultaneous manufacture of multiple antibody products, will enable Genmab to transition three antibodies from research to manufacturing per year.
In connection with this transaction, Genmab would produce clinical material to supply PDL's investigational studies for certain of its pipeline products under a clinical supply agreement.
"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," said Dr Lisa N. Drakeman, ceo 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."
Genmab plans to retain the approximately 170 employees currently working at the plant and does not foresee reducing either the PDL BioPharma or Genmab headcount following the acquisition.
Genmab's Dr Torben Lund-Hansen, vice president, head of manufacturing at Genmab since 2002, will serve as president of the manufacturing facility. He was previously responsible for establishing manufacturing facilities for Novo Nordisk.
The transaction has been approved by the boards of directors of both companies and is expected to close by the end of the first quarter of 2008, subject to customary closing conditions.