Akrimax wins first manufacturing contract
The contract manufacturer purchased Wyeth’s Rouses Point facility in January 2008 in a deal that saved the plant from closure. The drugmaker leases space back to Wyeth with the latter continuing to make product there during an interim period while Akrimax starts its own production.
Wyeth plans to have completely exited the plant by the end of this year, with Akrimax becoming the employer of record on January 1, 2010, although the transition period could last until 2011.
At one point Rouses Point had been a major manufacturing facility for Wyeth’s hormone replacement therapy range Premarin (conjugated estrogens). However, that product has experienced significant sales declines significant reduction in overall sales volume on concerns that the products can increase the risk of breast cancer and stroke.
Akrimax declined to name the customer, limiting itself to saying that it is a “global healthcare company.” The company’s president, Alan Rubino, said the deal had come in “ahead of our planned schedule” and “validates Akrimax's decision to acquire the Rouses Point facility.”
The company said it was selected from several potential partners in a competitive tender process.
The production contract is due to get underway shortly, according to the drugmaker, whose primary business is the in-licensing of established pharmaceuticals that can be used to treat metabolic syndrome, a combination of high blood pressure, high cholesterol, diabetes and abdominal obesity.
As part of the agreement with Wyeth, Akrimax also acquired patent rights to two pharmaceutical products, Inderal LA (long-acting propranolol hydrochloride capsules) for cardiovascular disease and the contraceptive product Lo/Ovral (norgestrel and ethinyl estradiol tablets), as well as arrange of over-the-counter medicines.
Akrimax bought the 950,000 sq. ft. facility, with the exception of a unit carrying out chemical development - for a little over $7.86m.
Wyeth said in November that it was planning to lay off 118 of the 725 workers at the plant later this month. For its part, Akrimax has said it plans to recruit up to 200 new employees over the next couple of years.