Flamel Technologies announced that it has entered into an agreement to divest its development and manufacturing facility located in Pessac, France, to RecipharmAB.
Under the agreement, Recipharm will pay Flamel EUR 10.6 million and make an investment of EUR 10.5 million in Flamel’s stock upon the closing of deal at a purchase price equal to the trailing 20-day average price. This new partnership allows Flamel to retain access to the development and manufacturing capabilities of Pessac and gain the use of any of Recipharm’s other facilities for the development or manufacture of their proprietary pipeline if needed. The Pessac facility is not currently used for the production of Flamel finished products and Flamel intends to continue to outsource to third party contract manufacturing companies like Recipharm.
“Flamel’s primary objective is the development of products using the company’s proprietary drug delivery platforms. The sale of the Pessac facility frees Flamel from the time-consuming task of running a contract development manufacturing facility,” said Michael S. Anderson, Chief Executive Officer. “This sale allows us to continue to call on the Pessac facility for technical aspects of development of our proprietary products using our current drug delivery technologies and the option to utilize Recipharm’s commercial manufacturing capabilities elsewhere. Given Recipharm’s expertise, the investment in Flamel’s stock is a welcome endorsement of Flamel’s anticipated success moving forward.”