Aesica Acquires Merck U.K. facility

Aesica Pharmaceuticals has bought the Ponders End fine chemicals manufacturing facility of Merck Sharp & Dohme, the U.K. subsidiary of Merck. The deal includes a long-term supply agreement that could bring Aesica anywhere from $150 million to $300 million in revenues.

The acquisition of Ponders End, located in Enfield, North London, is the next step in Aesica???s quest to become a leading supplier of active pharmaceutical ingredients (APIs). The deal will add 300 tons per year of production capacity and broaden Aesica???s capabilities to include manufacture of high-potency compounds. The 74 employees working at Ponders End will be transferred to Aesica.

"Through the acquisition, we gain a significant increase in our manufacturing capacity and capabilities, as well as a highly valued new client via the supply agreement with Merck," says Aesica CEO Robert Hardy.

The supply pact, which extends over six years, is for intermediates and APIs. Additional capacity at the site will enable Aesica to introduce more products into the facility in the future, an Aesica spokesman says.

Aesica was formed through the 2004 management buyout of BASF's Cramlington, U.K., API facility. According to the spokesman, Aesica's strategy is "to continue to grow through these types of acquisitions of products and facilities," as well as through expansion of its custom synthesis business.

For Merck, the sale is part of an overhaul of its global manufacturing network that began last fall.