Thermo Fisher’s M&A spend continues with €90m GSK facility
Thermo Fisher Scientific’s €90m ($100m) acquisition of GSK’s Cork, Ireland, site will allow it to expand capacity for the development and commercial manufacture of complex active pharmaceuticals ingredients (APIs).
Patrick Glaser, president of the drug substance division at Thermo Fisher, told us that all 400 staff members would join the company as per the purchase agreement, and added that the company plans to further expand the site beyond current capacity.
The Cork site specialises in producing APIs for treating paediatric cancer, depression and Parkinson’s disease. The site itself is made up of 10 production buildings, an R&D pilot plant and lab infrastructure.
Alongside taking over the site, Thermo Fisher announced that it has a signed a multi-year supply agreement with GSK, though Glaser could not confirm the exact length of this deal.
Thermo Fisher stated that it expects the transaction to complete before the end of 2019, at which point the site will become part of its Pharma Services business.
Michel Lagarde, SVP of Pharma Services for Thermo Fisher, said, “This transaction is another great example of our strategy to build on our strong foundation by adding capacity and capabilities to our pharma services offering through a combination of capital investments and M&A.”
Thermo Fisher has been particularly active, in terms of M&A, from the beginning of this year. In March, Thermo Fisher added Brammer Bio for $1.7bn to establish itself in the cell and gene therapy market.
The company also invested $50m in its biologic drug substance capabilities by expanding its St. Louis, Missouri, site for commercial manufacturing.
Glaser confirmed to us that the company had invested $250m across the Pharma Services business portfolio in the past year.
“Thermo Fisher wants to expand manufacturing capacity and capabilities to meet the growing demand from our customers for highly-specialized APIs. We are looking forward to leveraging the Cork site’s world-class team and excellent reputation to serve our customers,” Glaser added, when asked how this most recent acquisition fits into its overall strategy.
