Lotte is set to buy Bristol-Myers Squibb’s (BMS) facility in East Syracuse, which it says will serve its CDMO business in the US.
The deal, which is subject to regulatory approvals and other closing conditions, sees Korean-based firm Lotte Corporation acquire BMS’ New York site’s operations and assets. This includes the equipment, property, plant, workforce, and technical capabilities.
“This transaction is consistent with our longstanding goal of creating a manufacturing network to best support the ongoing needs of the business and emphasize our focus on patients,” a spokesperson for BMS told BioProcess Insider.
“We have taken a thoughtful approach to this decision, and we are confident that it will best support our mission to discover, develop and deliver innovative medicines for patients.”
The East Syracuse site will serve as the center for North America operations for its recently formed biologics contract development and manufacturing organization (CDMO) business. And following the closing of the deal, the CDMO will manufacture product for BMS from the facility.
“We are pleased to add this state-of-the-art facility to our global pharma operations, which will enable us to rapidly scale and expand our biologics CDMO business in North America,” said Hunki Lee, executive vice president of Lotte.
Until the transaction is closed, the East Syracuse site will continue to operate as part of BMS’ manufacturing network.
BMS is no stranger to offloading manufacturing facilities to CDMOs, in June 2019 the firm sold its Anagni, Italy product manufacturing and packaging facility to CDMO Catalent.
“Bristol Myers Squibb regularly evaluates ways to drive greater efficiency and simplicity while maintaining a strong, core commitment to innovation and delivering the value of our portfolio ,” the spokesperson said.
“As always, we will continue to ensure our manufacturing network best supports the long-term needs of the business and emphasize our focus on patients.”