Bayer to divest plasma products business
Bayer has signed an to contribute the assets of its worldwide plasma products business to NPS BioTherapeutics, a newly formed corporation controlled by affiliates of Cerberus Capital Management, of New York, and Ampersand Ventures, of Wellesley, Massachusetts.
Bayer has signed an to contribute the assets of its worldwide plasma products business to NPS BioTherapeutics, a newly formed corporation controlled by affiliates of Cerberus Capital Management, of New York, and Ampersand Ventures, of Wellesley, Massachusetts.
The total consideration to be received by Bayer amounts to approximately US $590m (€450m), including cash, a 10% interest in NPS BioTherapeutics, retention of selected working capital items and contingent payments of up to $60m. The transaction is expected to close in the first half of 2005 and is subject to regulatory approvals.
The agreement covers the products, facilities and employees representing the plasma portion of Bayer HealthCare's Biological Products Division. The recombinant factor VIII business, comprising the Kogenate product line for the treatment of hemophilia A, is not part of the transaction and will remain in Bayer HealthCare's portfolio.
'Kogenate is one of the most valuable and strategically important products in the Bayer HealthCare portfolio,' said Arthur Higgins, chairman of the executive committee of Bayer HealthCare. 'It is integral to our long-term strategy as we continue to realign our business, and allows us to build on our leadership position in the global hemophilia market.'
'Divesting the plasma business is another important step in the repositioning of our health care business,' added Bayer ceo Werner Wenning. 'In the future we will focus increasingly on our competencies in the consumer health business, on innovative medicines for humans and animals, and on high performance diagnostic systems.'
Sales of Bayer's plasma products in the first nine months of 2004 amounted to €481m. Key products include Polyglobin, Gamimune N and Gamunex for the treatment of immunodeficiency disorders, and Prolastin for the treatment of congenital pulmonary emphysema. The plasma business unit, headquartered in Research Triangle Park, North Carolina, employs approximately 1,600 people.