Baxter Buys Long-Idled Manufacturing Plant for Bargain Basement Price
Genmab signed an agreement with Baxter Healthcare for the sale of its nonplasma-derived antibody manufacturing facility in Brooklyn Park, MN for $10 million. Baxter will acquire the facility with 22,000 liters of capacity, land, and equipment for a bargain price.
The 215,000 square foot facility was completed in 2004 by PDL Biopharma at a cost of $200 million. Genmab bought the plant in 2008 for $240 million. Less than two years later, as part of a drive to build what it described as a more flexible model, the firm closed the plant and said it would meet future manufacturing requirements through outsourcing. At the time, Genmab hoped to sell the Brooklyn Park facility for about $150 million.
At the end of 2012, after several price reductions and years of maintaining a dormant plant, Genmab reduced the fair value of the plant to zero and committed to selling it. "There was a lot of activity and interest in the facility over recent months, but no firm offer has been received. Due to the continued uncertainty, we have taken the step to write down the facility to zero and will now enter into an aggressive sales process with the aim of closing a transaction within the next few months," said Jan van de Winkel, Ph.D., CEO, in December.
The majority of the employees were laid off in 2009, and Baxter will offer employment to the 23 employees currently supporting the facility.