Merck Sells Biomanufacturing Network To Fujifilm

Just over a year after creating it, Merck & Co. will sell its Merck Biomanufacturing Network to Fujifilm, the Japanese photography and imaging company. Merck will become a "key customer" of Fujifilm, according to the companies.

Fujifilm, which faces a declining photography market, already sells instruments and other technologies to the life sciences and medical sectors. In 2008, it entered the pharmaceutical business by acquiring Japan's Toyama Chemical. Now, the deal with Merck marks its entry into biopharmaceutical contract manufacturing.

"This acquisition provides an important addition to our pharmaceutical business with diverse capabilities and technical expertise in the production of protein therapeutics," Fujifilm CEO Shigetaka Komori said in announcing the deal on Feb. 28.

Under the agreement, Fujifilm will purchase Merck's MSD Biologics and Diosynth subsidiaries. MSD Biologics operates a facility in Billingham, England. Diosynth, which was acquired through Merck's 2009 purchase of Schering-Plough, has a plant in Research Triangle Park, N.C. The purchase includes manufacturing contracts, business support operations, and a technical workforce.

The two operations have a long history in the custom manufacturing arena. Opened in 1995, the North Carolina facility was part of Covance, spun off by Corning in 1996 and acquired by AkzoNobel's Diosynth unit in 2001. Schering-Plough acquired Diosynth in 2007.

Similarly, Zeneca Specialties opened the Billingham site in 1997. In 1999, after a management-buyout, the specialties business became Avecia. In late 2009, Merck agreed to purchase Avecia's biologics business, including the Billingham site.

Merck created the BioManufacturing Network in 2010 by combining the two operations. They produce recombinant proteins, vaccines, and monoclonal antibodies for drug industry customers. Since late last year, Merck has announced four new commercial production agreements for partners.