CMO Ben Venue Laboratories has asked Bank of America Merrill Lynch to try and find a buyer for its generic injectables business, Bedford Labs.
Marjorie Moeling, head of communications for Bedford Lab’s parent company Boehringer Ingelheim, told Outsourcing-pharma.com that: "Ben Venue Laboratories has engaged BoA Merrill Lynch to try to find a buyer for the Bedford Laboratories business."
Bedford Labs – which makes generic injectable drug products – is part of troubled contract manufacturing organisation (CMO) Ben Venue Labs, which is due to cease operations later this year after correcting long running quality problems proved too much for Boehringer .
The privately-owned German drugmaker announced its intention to close Ben Venue in October, explaining that measures put in place at its troubled facility in Ohio were unsustainable .
At the time it also said it “recognizes the importance of Bedford Laboratories, Ben Venue’s generic sterile injectables business, and is exploring strategic options to try to continue the supply of these products to patients.”
Similarly Bedford labs said it “will continue to provide products manufactured by Ben Venue and will distribute these products until that inventory is depleted. We will also continue to supply products manufactured by our other third-party manufacturing partners today and going forward. That will not change. “
According to an unnamed source quoted by Reuters Bank of America Merrill Lynch will also try to sell the Ben Venue plant, quality problems at which have been the cause of many drug shortages in the US and Europe in recent years.
However, when asked Moeling said that this is still "under consideration."
Estimates by city-data suggest the Ben Venue buildings are worth $64m, with the land being valued at $530,000.
Bedford Laboratories supplies generic sterile injectables to hospitals, group purchasing organizations and oncology treatment centers. The firm – which was founded in 1993 – claims to among the top three holders of Abbreviated New Drug Application (ANDA) – in number terms - in the US.