Eisai Company Employees Will Be Offered Biogen Jobs When RTP Campus Ownership Deal Closes
July 16, 2015
By Alex Keown, BioSpace.com Breaking News Staff
RESEARCH TRIANGLE PARK, N.C. – Biogen, Inc.’s North Carolina footprint is growing after it entered into an agreement to acquire Eisai Inc.’s Research Triangle Park (RTP) manufacturing campus. The property transfer, announced this morning, is part of the company’s operations realignment, which was announced earlier this year.
Eisai, which focuses on developing treatments for oncology and specialty care, including Alzheimer's disease, epilepsy and metabolic disorders, struck the deal to optimize the company’s “logistics strategy in support of our long-term business objectives,” Lou Arp, general manager of the company’s RTP site said in a statement.
The property transfer builds on an established relationship between Eisai and Biogen. In 2014, the two companies collaborated to develop and commercialize potential treatments for Alzheimer’s disease. The treatments will focus on amyloid brain plaque, which is commonly thought to be linked to the cause of Alzheimer’s. The two companies also have a deal for Biogen to develop treatments for multiple sclerosis, the Triangle Business Journal reported. Biogen has leased a portion of Eisai’s RTP facility since 2012. As part of the deal, Eisai provided vial filling services for Biogen’s biologic therapies, as well as packaging services for oral solid dose products. The Triangle Business Journal reported that under terms of the 10-year lease agreement gave Biogen Idec the option of purchasing Eisai’s oral dose facility, which the company utilized with this deal.
Under the terms of the property sale agreement, Biogen will continue to manufacture oral solid-dose products for Eisai, as well as Eisai's parenteral products. The property ownership transfer comprises all buildings on the campus. The parenteral facility will be transferred immediately upon closing of the transaction and the oral solid-dose facility will be transferred after the expiration of an existing short-term lease. As part of this arrangement, Eisai anticipates approximately 100 employees will be offered employment at Biogen, effective upon deal closing. Financial terms of the deal were not disclosed.
“Eisai's campus, technology and exceptional staff are a perfect fit to support the strategic growth of our global drug supply network, providing us with greater independence and control, expanding our manufacturing capabilities and ensuring that we can meet future demand for our marketed products and pipeline successes,” Esther Alegria, senior vice president of Global Manufacturing for Biogen, said in a statement.
Eisai Inc., the U.S. pharmaceutical subsidiary of Tokyo-based Eisai Co., Ltd. said it remains committed to having supply chain and manufacturing capabilities in the United States. Eisai will continue to base its global partnership management, quality assurance, supply chain and business support staff in North Carolina to manage a seamless supply chain. These functions will remain on the current RTP campus for a six-month transition period until Eisai has secured new office space. In addition, the company will continue to manufacture product at its facility in Baltimore. The closing of the transaction is subject to certain regulatory approvals.
Earlier this year, Eisai announced a corporate realignment of its operations that would include layoffs of about 25 percent company's commercial and regional corporate services units, the Triangle Business Journal reported.
Although Eisai Inc. is undergoing a corporate transformation, there are some positive things happening. In June, the U.S. Food and Drug Administration (FDA) approved the oral Fycompa (perampanel) CIII for adjunctive therapy in the treatment of primary generalized tonic-clonic (PGTC) seizures. The drug was approved to treat patients age 12 and older.
As New Jersey Biotech Booms, Will It Overtake Other States As Prime Location?
A week after Celgene Corporation announced it is officially the mystery buyer of Merck & Co. ’s former 1 million-square-foot R&D site in Summit, N.J., it quickly became our most popular story last week.
The company announced last Wednesday that it is buying the space, ending months of speculation about what Big Pharma company might move into the neighborhood.
The Summit, N.J. site is zoned research/office. The New Jersey site would put operations closer to some of the major biotech and pharmaceutical hubs on the East Coast.
But, by far, the most tempting part of doing business in the state remains New Jersey’s operating tax credit, which allows companies to sell their net operating losses to the New Jersey Treasury. One of the state’s most recognizable biotechs, Celgene, used the program until it became profitable, which was key to it staying in the state, said local officials.
That has BioSpace is wondering if New Jersey is becoming the new face of biotech. What do you think? Can the Garden State compete with other longtime stalwarts like California or Boston?