US drug giant Pfizer has exercised its option to re-acquire a manufacturing facility in Rouses Point, New York from Akrimax.
Akrimax bought the facility in January 2008 from Wyeth, which had been trying to phasing out activities at the plant since 2005 following a drop in demand for its menopause treatment Premarin.
The original deal saw Akrimax lease manufacturing space back to Wyeth to allow it to keep making both Premarin and Effexor XR (venlafaxine). This arrangement continued following Pfizer’s $68bn acquisition of Wyeth in 2009 .
Akrimax used its portion of the facility to manufacture prescription and over-the-counter (OTC) products in solid (capsule and tablets), semi-solid (creams and ointments) and liquid dosage forms, as well as controlled/sustained release and sterile injectables.
According to a number of reports Pfizer has agreed to re-acquire the facility after Akrimax’ plan to expand manufacturing operations falter as a result of over capacity in the market.
The 5 WPTZ.com website reported that Akrimax decided to shutdown its new business development department that was based at the facility.
Pfizer spokesman Chris Loder told Press Republican that Akrimax’ departure, which is due to take place in the next few weeks, will see around 60 of the 400 people employed at the facility lose their jobs.
Loder also told the local news website that while Pfizer intends to continue some manufacturing operations at the facility in the short term, the plan is to seek a buyer for the facility and, if none can be found, close the plant in 2013.
More to follow...