Merck & Co. has agreed to buy Avecia Biologics Ltd for an undisclosed price.
Merck, which operates as Merck Sharp & Dohme (MSD) in the UK, has entered into a definitive agreement with Avecia Investments Limited. Avecia group’s Biologics Business, based at Billingham in the north east of the UK, has been developing processes and making protein-based biologics to cGMP since 1998.
Merck will acquire all of company’s assets, including all the company’s process development and scale-up, manufacturing, quality and business support operations located in Billingham, UK. Closing of the transaction is subject to regulatory approval, as well as other customary closing conditions.
Significantly, it has emerged that 500 biotech jobs at the plant will be safeguarded under the deal. Both the parties have assured that jobs of the Teesside staff are safe. For its part, according to a report filed by nebusiness.co.uk, Merck said it saw revenue-generating potential in the Billingham operation and had no intention of cutting costs by axing staff.
Expansion
John T. McCubbins, senior vice president, Biologics and Therapeutic Protein Operations, Merck Manufacturing Division mentioned that the company continues to expand its biopharmaceutical expertise and manufacturing capacity.
This transaction follows an initial strategic development and supply relationship with Avecia Biologics.
This deal “will provide us with an operational facility staffed by an experienced workforce that is highly skilled in a broad portfolio of bioprocess systems,” McCubbins said.
Merck plans to engage in discussions with individual customers relating to their specific ongoing and future biological process development and manufacturing needs after the transaction is closed.
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