Penwest sells excipients business to Rettenmaier

Penwest Pharmaceuticals has signed an agreement to sell its excipients business to Josef Rettenmaier, based in Rosenberg, Germany, for US$41.75m (€41m). The deal is subject to the approval of Penwest's shareholders, but is expected to be completed by the first quarter of 2003.

Tod R. Hamachek, chairman and ceo of Penwest, said: 'Over the past few years, we have turned our efforts towards expanding the company's drug delivery pipeline through the development of pharmaceutical products internally and with third-party collaborators, and to broaden our patent estate. This transaction is an important step in the continued financing of that strategy and will focus Penwest solely on growing our specialty pharmaceutical business.'

Josef Otto Rettenmaier, part owner and managing director said: 'We are very pleased to be acquiring Penwest's well recognised excipient product line. The combination of the businesses will mean the broadest offering of tableting ingredients for our customers.'

Penwest's excipient business, as distinct from its drug delivery business, develops, manufactures and sells the inactive ingredients used in tableting pharmaceutical and nutritional products.

Rettenmaier is expected to offer employment to all of Penwest's employees currently working for the excipient business and Stephen J. Berte, Jr will continue as general manager of the business. The company will also take control of all related excipient facilities including the manufacturing facilities in Cedar Rapids, Iowa, and Nastola, Finland, the corporate offices of the excipient business in Patterson, New York, and the sales offices in Europe.