News

Posted On: 06/16/2005

Genentech to Buy Biologics Manufacturing Facility from Biogen Idec

Biogen Idec, Cambridge, Mass., and Genentech, Inc.. South San Francisco, Calif., on June 16 announced an agreement for Genentech to purchase Biogen Idec's NIMO Oceanside, Calif. biologics manufacturing facility. The approximately 430 employees currently at the facility are expected to be offered employment at Genentech or retained by Biogen Idec.

"This acquisition will position us to improve delivery of life-extending and life-improving therapies to patients with unmet medical needs. We expect the facility will play an important role in helping us deliver against our aggressive production plan," said Patrick Y. Yang, Ph.D., Genentech's senior vice president, Product Operations. "We view the Oceanside facility as a potentially unique and valuable asset, in terms of the manufacturing facilities, the added capacity and the addition of highly-skilled employees who will join our team."

The parties have signed a purchase and sale agreement. The transaction is subject to various closing conditions. If the conditions are met, the parties anticipate closing the sale as early as June 23, 2005. Under terms of the agreement, Genentech will pay Biogen Idec approximately $408 million in cash for the 60-acre, 500,000-square-foot facility.

The Oceanside plant, completed in December 2004, has 90,000 liters of bioreactor capacity. Genentech expects biologic manufacturing of Avastin (bevacizumab) at the plant to commence in 2006 with Food and Drug Administration (FDA) licensure anticipated in the first half of 2007. Of the approximately 430 employees currently working at the Oceanside facility, it is anticipated that approximately 330 will be offered employment by Genentech, and Genentech currently intends to hire approximately 200 additional employees at the facility by the end of 2006.

Biogen Idec expects to incur charges in the range of approximately $50 to $57 million, after income tax, in connection with the sale.

Following the closing of the transaction, Genentech will provide details of this transaction and an update on its overall manufacturing plans in a Webcast on or before its second quarter earnings announcement scheduled for July 11, 2005.

For more information on Biogen Idec, visit www.biogenidec.com. For more information on Genentech, visit www.gene.com.