Biogen to sell biologics manufacturing facility in Denmark to Fujifilm for up $890 million

Biogen said Tuesday that it agreed to sell its biologics manufacturing operations in Hillerød, Denmark for up to $890 million in cash to Fujifilm. Following the completion of the transaction, which is expected in the second half, Fujifilm will use the site to produce commercial products for Biogen, such as Tysabri (natalizumab), as well as other third-party medicines.

"We continually evaluate our manufacturing strategy and we believe that this agreement serves the best interest of our employees, customers, partners and shareholders," remarked Biogen CEO Michel Vounatsos. "As we continue to diversify our portfolio across multiple modalities and bring online our state-of-the-art manufacturing facility in Solothurn, Switzerland, we believe that we have enhanced our manufacturing capabilities and capacity for biologics with this transaction," Vounatsos added.

Biogen said that it expects the new manufacturing facility in Solothurn to be operational by the end of 2020, at which time it will also operate production facilities in Research Triangle Park, North Carolina.

According to Biogen, under the share purchase agreement, Fujifilm will acquire the shares of the Hillerød subsidiary, subject to minimum purchase commitment guarantees and other contractual terms. Biogen noted that around 800 employees at the Hillerød subsidiary are expected to continue employment under Fujifilm ownership. The company added that it expects to record a loss in the first quarter of 2019 of approximately $130 million to $150 million related to the sale.


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