Penn sells manufacturing activities to Celgene
Penn Pharmaceutical Services, a Wales-based provider of pharmaceutical outsourcing services, has recently completed the sale of part of its third-party manufacturing activities to the US-based Celgene Corporation and, consequently, a secondary management buy-out of the remaining core businesses to its incumbent senior management team. The combined value of both transactions was
Penn Pharmaceutical Services, a Wales-based provider of pharmaceutical outsourcing services, has recently completed the sale of part of its third-party manufacturing activities to the US-based Celgene Corporation and, consequently, a secondary management buy-out of the remaining core businesses to its incumbent senior management team. The combined value of both transactions was £80m.
Penn's strategy since the original MBO in September 2000 has been to divest its non-core activities including own brand products and to re-focus on providing formulation development; analytical development; clinical trial supply; CMC consultancy; QP audits and contract manufacturing services to the international healthcare industry.
Since 2000 the company's sales have quadrupled to £20 million and 60 new jobs have been created in South Wales. Craig Rennie, chairman and ceo of Penn, said: 'The sale of our non-core products to Celgene Corporation and the subsequent buy-out by the senior management team will allow us to focus on providing a leading outsourcing service to our clients and to further develop our international capabilities and service facilities. This reinvestment demonstrates the confidence that management has in the future of the company and in our ability to further improve and develop our capabilities'.