Merck Sells Colorado Biologics Operations To KBI Biopharma
KBI Biopharma, a contract development and manufacturing firm, announced that it has signed a definitive agreement with Merck to acquire its microbial process development and manufacturing operations in Boulder, Colorado.
Joe McMahon, KBI President and CEO, said, “We are very pleased to continue to advance our partnership with Merck, and to welcome this very highly regarded team of scientists in Boulder to the KBI team. KBI will now offer expanded microbial development and manufacturing services up to 1500L scale, as well as continuing to offer our current full range of process development, analytical and formulation development, and mammalian manufacturing services up to 2000L.”
Under the terms of the new agreement, KBI will provide continuous development and manufacturing services to Merck and other third parties. The company will also support current drug development projects for Merck from two facilities located in North Carolina.
Merck bought its biologics plant in Boulder five years ago for $130 million. The facility has been instrumental in providing analytical and technical support for the company’s pipeline and production of Recombinant Trypsin (R-Trypsin), which is used in the manufacture of vaccines and other biologics. No financial terms of the transaction were disclosed by either company. Thirty employees at the biologics plant will be transferred to KBI, which was awarded $1.4 million in state incentives for opening up an additional 120 jobs in Boulder.
The sale of its biologics plant is the latest in Merck’s restructuring campaign, which is trying to cut up to $2.5 million in expenses from its operating costs. With its revenues under fire from looming patent cliffs, the company has sold off several assets including BioManufacturing Network and other biologics plants in Northeast England. Merck has also sold active pharmaceutical ingredient operations in the Netherlands and the U.S. to Aspen Pharma for $1 billion last year.