Recipharm, a contract development and manufacturing organization based in Sweden, will purchase Flamel Technologies’ development and manufacturing facility in Pessac, France. Recipharm also will provide development and manufacturing support to Flamel under a long-term services agreement.
This new partnership allows Flamel to retain access to the development and manufacturing capabilities of the Pessac facility and gain the possibility to use any of Recipharm’s other facilities for the development or manufacture of its proprietary pipeline.
The purchase price is $13.2 million plus working capital. In a separate transaction, Recipharm also will make an investment of $13.1 million in newly issued Flamel shares, approximately 2.3% of Flamel shares.
Recipharm has an option to negotiate with Flamel for the European rights to any product Flamel plans to license for sale in the European market.
Mike Anderson, CEO of Flamel, said, “Flamel’s primary objective is the development of products using the company’s proprietary drug delivery platforms. The sale of the Pessac facility frees us from the time-consuming task of running a contract development manufacturing facility.”
“This sale allows us to continue development of our proprietary products using our current drug delivery technologies at the Pessac facility and the option to utilize Recipharm’s commercial manufacturing capabilities elsewhere,” he added.
Closing is expected before the end of 2014.