I've been mulling over this news:
North American Vaccine to Acquire Cephalon Manufacturing Facility
BELTSVILLE, Md./WEST CHESTER, Pa.--(BUSINESS WIRE)--
North American Vaccine (AMEX:NVX) and Cephalon, Inc. (NASDAQ:CEPH)
announced today that they have entered into a definitive agreement
for North American Vaccine to acquire Cephalon's Beltsville,
Maryland pharmaceutical manufacturing facility for approximately
$25 million in a combination of cash and assumed lease obligations.
Cephalon has used the 35,000 square foot facility to manufacture
clinical supplies of Myotrophin(R) (rhIGF-1).
"We are pleased at the prospect of acquiring Cephalon's
facility," said Sharon Mates, Ph.D., president of North American
Vaccine, "for it provides the company with access to additional
manufacturing capacity in which to produce future vaccine
products."
"The sale of the Beltsville plant is prudent," said Frank
Baldino, Jr., Ph.D., Cephalon's president and chief executive
officer, "now that Chiron Corporation has completed its installation
of manufacturing facilities in California for potential commercial
scale production of Myotrophin with a larger capacity than that
available at Beltsville." Cephalon and Chiron are developing
Myotrophin for the treatment of amyotrophic lateral sclerosis
(ALS) and making the drug available to a limited number of patients
with ALS under an FDA-approved Treatment Investigational New
Drug protocol.
Completion of the acquisition is subject to governmental
approval and the satisfaction of usual and customary closing
conditions.
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Get this...North American Vaccine is trying to compete with Chiron in the next generation
Pertussis vaccine market. So, Cephalon gets Chiron to manufacture Myotrophin for them
so they can sell their own plant to Chiron's "competitor".
Actually, Chiron probably comes out better with the new business from CEPH and knows
NVX would get a plant from someone somewhere anyway. Just a coincidence but with the
rumor recently mentioned in BioCentury (9/30):
On the rumor side, Cephalon (CEPH) surged on Friday, closing up $2.25 to $22.875 on
3.2 million shares. The stock gained $5.25 (30 percent) on the week. Scuttlebutt was that
the company was 3in-play2 and that partner Chiron was considering buying the company.
A second rumor claimed that Fidelity was buying a large stake in the open market. 3The
stock is up three-and-a-half and no one knows anything,2 said Mitch Silber, a partner at
The Carson Group, at mid-day. CEPH, which had been as high as $24.625 on the day,
closed at $18 on Wednesday. CEPH spokesperson Jason Rubin said the company does not
comment on rumors, but acknowledged that he1d heard them over the course of the day.
That would make Chiron the eventual seller of the plant to NVX. That would be pretty
weird.
Onward & Upward...
Mark |
