King Pharma Sells Rochester Facility To JHP Pharma

JHP Pharmaceuticals has signed an asset purchase agreement to acquire King Pharmaceuticals‘ Rochester, MI sterile manufacturing facility, as well as legacy products manufactured there and a contract manufacturing business. The companies also entered into a manufacturing and supply agreement under which JHP will provide certain fill and finish support for King’s hemostatic product, Thrombin-JMI (thrombin, topical, bovine, USP).

Eric J. Bruce, King’s chief technical operations officer, said, “This transaction represents the continued successful execution of our strategy for long-term growth, particularly with respect to the realization of greater operating efficiency for our company. This transaction will enable us to redeploy our current investments in these assets to our ongoing R&D and business development initiatives.”

Peter Jenkins, co-founder of JHP, said, “JHP is delighted to secure these cornerstone assets for our planned business in the U.S. The acquired products will provide immediate critical mass in our target hospitals and clinic market and we are confident in the opportunity to build the contract manufacturing business at Rochester.”

Under the terms of the asset purchase agreement, JHP will pay King approximately $90 million, subject to final inventory adjustments. The agreement is subject to customary regulatory approvals and is expected to close in 3Q2007.

King’s 2006 sales for the legacy products included in the agreement totaled approximately $51 million. Revenue from contract manufacturing at the facility totaled approximately $14 million in 2006. The agreement includes the following legacy branded pharmaceutical products: Adrenalin, Aplisol, Brevital, Delestrogen, Ketelar, Pitocin, Pitressin, Tigan, Triostat, Coly-Mycin, Cortisporin. JHP plans to offer employment to all current employees at the Rochester manufacturing facility.