Pharmaron has signed a non-binding heads of terms with Merck Sharpe & Dohme Limited (MSD) for the purchase of UK-based Hoddesdon site, which comprises MSD’s process development and research facility.
The deal is expected to be completed in the first quarter of 2017.
Pharmaron considers this an opportunity to acquire Good Manufacturing Practice (GMP) standard facilities for the development of Active Pharmaceutical Ingredients (API) and formulation development in Europe to complement its chemistry and integrated drug discovery and development services globally.
As per the deal, MSD will continue on site 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 that 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 the 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 the acquisition of Quotient Bioresearch in the UK, this deal further consolidates our strategic position in Europe to better serve our partners globally, particularly in Europe.”
Commercial details of the transaction have not been divulged.
Pharmaron is a private R&D service provider for the life science industry. With about 4,000 employees, it has operations in China, the US and UK.