Syracuse, NY — South Korean conglomerate Lotte has agreed to purchase Bristol Myers Squibb’s pharmaceutical plant in eastern Syracuse and make it the North American center for contract development and manufacturing of biologics.
The companies said Friday they expect to close the transaction in the second half of 2022, subject to regulatory approval and meeting other closing conditions.
They did not disclose the purchase price in their announcement early Friday morning, but Yonhap News Agency reported that Lotte will pay $160 million for the plant and said the deal includes contract manufacturing agreements to produce drugs worth $220 million for Bristol in the United States. next three years.
The more than 400 Bristol employees at the Thompson Road facility will become employees of Lotte Corp. when the acquisition is complete.
Lotte said it will acquire the East Syracuse site’s operations and assets, including the real estate, plant and equipment, as well as a workforce with technical capabilities and expertise.
Upon completion of the transaction, Lotte will manufacture products for Bristol from its East Syracuse plant. Lotte said it expects to use the facility over time to expand its contract development and manufacturing activities for the biopharmaceutical industry.
“The East Syracuse location has been an important part of the history of our company and manufacturing network for decades and we are confident that Lotte will take full advantage of the facility, its capabilities and its experienced staff as it continues to play a vital role for patients. around the world,” said Karin Shanahan, executive vice president, Global Product Development and Supply, for Bristol.
“We took a thoughtful approach to this decision and believe it will best support the continued evolution of our manufacturing network and our mission to deliver innovative medicines that help patients overcome serious diseases.”
“We are excited to add this state-of-the-art facility to our global pharmaceutical business, enabling us to rapidly scale and expand our biological CDMO business in North America,” said Lotte Executive Vice President Hunki Lee. “We look forward to welcoming the talented East Syracuse team to Lotte, and we plan to make significant investments to further enhance the facility and its capabilities to support our strategic growth goals going forward.”
The East Syracuse facility will continue to operate as part of Bristol Myers Squibb’s manufacturing network until completion of the transaction.
William Blair is financial advisor to Bristol Myers Squibb and Baker McKenzie is legal counsel to Bristol Myers Squibb on the transaction.
The facility has a long history in Eastern Syracuse. The site was originally established in 1943 to respond to the US government’s call for large-scale production of penicillin. At its peak, the plant produced up to 70% of the penicillin made in the United States and employed more than 2,000 people.
Bristol stopped producing penicillin at the plant in 2004. The facility now focuses on developing biologics: drugs made from plant or animal cells. It also makes small batches of drugs for clinical trials and is exploring ways to mass-produce biopharmaceuticals.
Many of the factory jobs are occupied by biochemists, molecular biologists and engineers.
Bristol is headquartered in New York City and has more than 30,000 employees worldwide.
Lotte Corp. is a holding company of Lotte Group, based in Seoul, South Korea. Lotte Group was founded in 1967 and has since grown to become South Korea’s fifth largest conglomerate, with four major business areas including food and beverage; retail trade; chemical; and hotels, with more than 90 branches.
Lotte is present in more than 30 countries around the world. It is known for its skyscraper, Lotte World Tower, the tallest building in South Korea and the seventh tallest in the world.
Rick Moriarty covers business news and consumer issues. Do you have a tip, comment or story idea? Contact him at any time: E-mail † Twitter † facebook † 315-470-3148