Celgene acquires pharma plant from Siegfried

Celgene is purchasing a multipurpose active pharmaceutical ingredient (API) facility in Zofingen, Switzerland, from fine chemicals producer Siegfried for $46.5 million in cash. The New Jersey-based drug company will initially use the plant to produce Revlimid, a thalidomide analog approved for treating multiple myeloma and certain myelodysplastic syndromes. "This asset acquisition further extends our global infrastructure and supports our objective to strategically control the production of Revlimid worldwide," says Celgene CEO Robert J. Hugin. Commercial production of the Revlimid API is expected to begin in 2007. The two companies will cooperate long-term for chemical intermediates, analytical testing, and other technical services. Celgene is the latest drug company to acquire, rather than build, API production capabilities during a time of industry overcapacity. Earlier this year, Gilead Sciences bought Degussa's Raylo Chemicals subsidiary in Canada for about $140 million to support its drug development activities. The two companies also struck a long-term agreement for Degussa to supply raw materials and APIs for Gilead products. And Genentech recently entered a manufacturing agreement with Lonza under which it has the option to buy a Lonza biopharmaceutical facility in Singapore.