Recipharm Enters Into Partnership with AstraZeneca for Swedish Biomanufacturing Facility

AstraZeneca is divesting the AstraZeneca Biotech Laboratory (ABL) in Södertälje, Sweden, to the contract development and manufacturing organisation Recipharm AB.

Under the terms of the agreement, Recipharm Biotech AB (a newly formed subsidiary of Recipharm) will lease the ABL from AstraZeneca for an initial period of 12 years. Recipharm Biotech AB will also purchase all associated equipment, and the majority of the existing ABL staff will transfer employment to Recipharm Biotech AB. AstraZeneca will retain a significant minority stake in the new company, in addition to entering into a supply arrangement for Phase I and Phase II material for one of its development projects. No financial terms were disclosed.

The divestment of the ABL follows AstraZeneca's recent acquisition of MedImmune through which it gained extensive biotechnology manufacturing capabilities. As a result, AstraZeneca has consolidated all biotech activities within MedImmune at their sites in the UK and the USA.

- By divesting the facility, we are able to realize value from the assets while preserving jobs for the vast majority of the skilled and experienced workers. In turn, Recipharm gains a state-of-the-art laboratory, which is ideally suited to their strategic needs, said According to Jan Lundberg, AstraZeneca Executive Vice President for Global Discovery Research.

The handover date for the facility is set for 1 January 2009.

Source: Press release, Recipharm, 17.11.2008