Genmab and PDL BioPharma Sign Purchase Agreement for Antibody Manufacturing Facility
21/02/2008 14:48
PR Newswire
COPENHAGEN, Denmark and REDWOOD CITY, California, February 21 /PRNewswire/ --
- Summary: Genmab and PDL BioPharma Have Entered into an Agreement Under
Which Genmab Will Acquire PDL's Antibody Manufacturing Facility Located in
Brooklyn Park, Minnesota, USA.
Genmab A/S (OMX: GEN) and PDL BioPharma, Inc. (Nasdaq: PDLI) announced
today that they have entered into an agreement under which Genmab would
acquire PDL's antibody manufacturing facility located in Brooklyn Park,
Minnesota, USA for USD 240 million to be paid in cash. The transaction also
includes land, equipment and access to a leased space housing a development
lab.
Genmab expects the Minnesota facility, which has a production capacity of
22,000 liters, will be sufficient to provide a sustainable source of both
clinical and commercial scale material for its pipeline. The facility
features two 1,000 liter and two 10,000 liter bioreactors, which support the
simultaneous manufacture of multiple antibody products and will enable Genmab
to transition three antibodies from research to manufacturing per year.
"Over the past few years Genmab has been preparing for the market launch
of our late stage antibodies and we continue to build a broad pipeline of
antibody products, which currently includes 10 products in clinical
development. Consequently, the need to secure significant manufacturing
capacity has become an increasing priority," stated Lisa N. Drakeman, Ph.D.,
Chief Executive Officer of Genmab. "We believe that the new PDL manufacturing
facility, with its complete antibody process development platform, represents
our best option to secure manufacturing capacity, allowing Genmab to produce
antibodies more efficiently and cost effectively while adding key
manufacturing expertise to our capabilities we continue to build for a
commercial future."
"We are pleased to enter into this agreement with Genmab, which we
believe is the optimal transaction to fully realize the value of our
biologics manufacturing facility. Importantly, it also represents another
step in delivering on our commitment to maximize the value of PDL's assets
for our stockholders, following on the recent sale of our commercial assets,"
said L. Patrick Gage, Ph.D., interim Chief Executive Officer of PDL.
Genmab plans to retain the approximately 170 employees currently working
at the manufacturing facility and does not foresee reducing either the PDL
BioPharma or Genmab headcount following the acquisition. In connection with
this transaction, Genmab would produce clinical material to supply PDL's
investigational studies for certain of its pipeline products under a clinical
supply agreement.
Genmab's Torben Lund-Hansen, Ph.D. will serve as President of the
manufacturing facility. Dr. Lund-Hansen has served as Vice President, Head of
Manufacturing at Genmab since 2002. Previously, Dr. Lund-Hansen was
responsible for establishing manufacturing facilities for Novo Nordisk.
The transaction has been approved by the boards of directors of both
companies and is expected to close by the end of the first quarter of 2008.
The transaction is subject to customary closing conditions, including
clearance by the US antitrust authorities under the Hart-Scott-Rodino Act and
will become effective as soon as these conditions have been satisfied.
Merrill Lynch & Co. is acting as financial advisor and DLA Piper and
Briggs and Morgan, P.A. are acting as legal advisors to PDL in connection
with the transaction.
Genmab Conference Call Genmab's senior management will hold a conference
call about the news today, February 21, 2008 at:
3:00 PM CET 2:00 PM GMT 9:00 AM EST
The dial in numbers are as follows:
+1-866-214-7077 (in the US) +1-416-915 9608 (outside the US)
The conference call will be held in English.
A live webcast of the call will be available at http://www.genmab.com.
The webcast will also be archived on Genmab's website.
About Genmab
A/S Genmab is a leading international biotechnology company
focused on developing fully human antibody therapeutics for unmet medical
needs. Using unique, cutting-edge antibody technology, Genmab's world class
discovery and development teams have created and developed an extensive
pipeline of products for potential treatment of a variety of diseases
including cancer and autoimmune disorders. As Genmab advances towards a
commercial future, we remain committed to our primary goal of improving the
lives of patients who are in urgent need of new treatment options. For more
information on Genmab's products and technology, visit http://www.genmab.com.
About PDL
PDL BioPharma, Inc. is a biopharmaceutical company focused on
discovering, developing and commercializing innovative therapies for severe
or life-threatening illnesses. For more information, please visit
http://www.pdl.com.
Forward Looking Statement for Genmab: This press release contains forward
looking statements. The words "believe", "expect", "anticipate", "intend" and
"plan" and similar expressions identify forward looking statements. Actual
results or performance may differ materially from any future results or
performance expressed or implied by such statements. The important factors
that could cause our actual results or performance to differ materially
include, among others, risks associated with product discovery and
development, uncertainties related to the outcome and conduct of clinical
trials including unforeseen safety issues, uncertainties related to product
manufacturing, the lack of market acceptance of our products, our inability
to manage growth, the competitive environment in relation to our business
area and markets, our inability to attract and retain suitably qualified
personnel, the unenforceability or lack of protection of our patents and
proprietary rights, our relationships with affiliated entities, changes and
developments in technology which may render our products obsolete, and other
factors. Genmab is not under an obligation to up-date statements regarding
the future following the publication of this release; nor to confirm such
statements in relation to actual results, unless this is required by law.
Forward Looking Statement for PDL: This press release contains
forward-looking statements, including regarding the expected closing of PDL's
sale of manufacturing assets to Genmab which involves risks and
uncertainties. Actual results may differ materially from those, express or
implied, in these forward-looking statements. The consummation of the sale of
assets could be adversely impacted or prevented by failure to satisfy closing
conditions, or regulatory delays. Other factors that may cause PDL's actual
results to differ materially from those expressed or implied in the
forward-looking statements in this press release are discussed in PDL's
filings with the Securities and Exchange Commission (SEC), including the
"Risk Factors" sections of its annual and quarterly reports filed with the
SEC. Copies of PDL's filings with the SEC may be obtained at the "Investors"
section of PDL's website at http://www.pdl.com. PDL expressly disclaims any
obligation or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in PDL's
expectations with regard thereto or any change in events, conditions or
circumstances on which any such statements are based for any reason, except
as required by law, even as new information becomes available or other events
occur in the future. All forward-looking statements in this press release are
qualified in their entirety by this cautionary statement.
Genmab(R); the Y-shaped Genmab logo(R); HuMax(R); HuMax-CD4(R);
HuMax-CD20(R); HuMax-EGFr(TM); HuMax-IL8(TM); HuMax-TAC(TM); HuMax-HepC(TM);
HuMax-CD38(TM); HuMax-CD32b(TM) and UniBody(R) are all trademarks of Genmab
A/S.
NOTE: PDL BioPharma and the PDL BioPharma logo are considered trademarks
of PDL BioPharma, Inc.
Genmab Contact:
Helle Husted, Sr. Director, Investor Relations,
T: +1-45-33-44-77-30;
M: +1-45-25-27-47-13;
E: hth@genmab.com
PDL Contacts:
Kathleen Rinehart
(Media): +1-650-454-2543,
kathleen.rinehart@pdl.com
Jean Suzuki
(Investors): +1-650-454-2648,
jean.suzuki@pdl.com
Genmab Contact: Helle Husted, Sr. Director, Investor Relations, T: +1-45-33-44-77-30; M: +1-45-25-27-47-13; E: hth@genmab.com; PDL Contacts: Kathleen Rinehart (Media): +1-650-454-2543, kathleen.rinehart@pdl.com Jean Suzuki (Investors): +1-650-454-2648,
jean.suzuki@pdl.com