Pharmaron enters into non-binding heads of terms with MSD over Hoddesdon UK site

Pharmaron has entered into a non-binding Heads of Terms (HoTs) with Merck Sharp & Dohme Limited (MSD) for the sale of the Hoddesdon UK site which includes MSD’s process development and research facility.

The parties hope to complete the deal in Q1 2017.

Pharmaron sees this as a unique opportunity to acquire state-of-the-art Good Manufacturing Practice (GMP) standard facilities for the development of Active Pharmaceutical Ingredients (API) and formulation development in Europe to complement Pharmaron’s existing world class chemistry and integrated drug discovery and development services globally.

Under the deal, MSD will remain on site on and lease-back the main office buildings.

MSD UK and Ireland managing director Louise Houson said: “We are very pleased to be progressing this deal with Pharmaron.

“This deal will secure the future of the site while meeting the changing business needs of MSD and its employees for the foreseeable future. It also ensures MSD’s scientific legacy in Hoddesdon continues, with the potential to create local opportunities for our scientific staff in their areas of expertise.”

Pharmaron chairman and CEO Boliang Lou said: “This is an exciting opportunity to have an industry-leading R&D site join the Pharmaron group, which once again demonstrates our commitment to our mission to become a world leader in small molecule drug R&D services.

“It allows us to develop our global capabilities in process chemistry and manufacturing services area, strengthening our capabilities in fully integrated R&D services. Together with the recent addition of GMP radiochemistry and GCP/GLP metabolism platforms through acquisition of Quotient Bioresearch in the U.K., this deal further consolidates our strategic position in Europe to better serve our partners globally, particularly in Europe.”

Commercial details on the transaction are not being disclosed.