Aesica acquires chemical plant from Merck subsidiary

Aesica, a supplier of active pharmaceutical ingredients to the global pharmaceutical industry, on October 9 announces it had acquired the chemical manufacturing facility at Ponders End, United Kingdom, from Merck Sharp & Dohme Limited (MSD), the U.K. subsidiary of Merck & Company Inc. In addition to acquiring the site, Aesica has also entered into an agreement to supply intermediates and active ingredients to Merck over a number of years. The supply agreement has a potential revenue stream of $150 million up to $300 million.

The Ponders End site is a high-tech manufacturing facility located in Enfield, North London. It has potent compound and bulk manufacturing facilities producing a number of MSD's products. The plant has a capacity to produce 300 tons of products per year. Under the agreement, 74 employees currently working at the site will transfer their employment from MSD to Aesica immediately.

"We are delighted to have completed the purchase of the Ponders End facility,” said Dr. Robert Hardy, CEO of Aesica. “Through the acquisition, we gain a significant increase in our manufacturing capacity and capabilities, as well as a highly valued new client via the supply agreement with Merck. We are an ambitious company, and buying Ponders End is an important part of our strategy to build on our leading position in the supply of Active Pharmaceutical Ingredients (APIs) through the acquisition of products and facilities, and through growing our custom synthesis business. We are looking forward to establishing a positive relationship with the community as we grow our business at Ponders End."

The sale of the site is part of Merck's global restructuring of its manufacturing operations (announced November 2005) to create a global manufacturing network that is better aligned to Merck's current and anticipated future product demand.

Mike Lewis, site head for the MSD facility at Ponders End, added: "This agreement meets the strategic objectives of both companies and, importantly, preserves employment for the current workforce who have shown such commitment over the years. With a history of excellence in chemical manufacturing and with a complement of highly skilled employees, we look forward to Aesica running a very successful operation at Ponders End."