Genmab selling plant and turning to CMOs
The Denmark-based pharma has experienced a decline in workload as a consequence of partners taking on increasing responsibilities in upcoming studies, according to the company.
In response to this decrease in demand Genmab is selling its Brooklyn Park facility and will deal with the loss of capacity Genmab by working with contract manufacturing organisations (CMO).
By adopting this plan Genzyme believes it will create a more flexible model "to address varying demand for clinical development work going forward" and allow it to focus resources on developing new medicines.
"It is vital that we refocus our energies on what Genmab is best at and what the pharmaceutical industry needs most - innovation," explained Lisa Drakeman, CEO of Genmab. She added: "The challenging demands on our industry require Genmab to take a hard look at our organisation and continue to prioritise spending."
To acheive these goals Genmab has put its facility in Brooklyn Park up for sale. Until a sale is agreed the facility will operate on a maintenance-only mode with a small staff.
By undertaking the restructuring Genmab anticipates acheiving annual savings of DKK300m ($60m) but severence, retention payments and other charges will cost it DKK105m.
As a consequence of these charges Genmab has lowered its guidance for the year. Genmab acquired the facility from PDL BioPharma for $240m in 2008 but believes a fair value, minus the cost of selling the site, is $145m.
