Global health care company Fresenius Kabi has acquired BD Rx, which includes the pharmaceutical manufacturing plant in Wilson and the BD Simplist line of seven drugs in ready-to-administer prefilled glass syringes.
The deal announced on Jan. 8 also includes an agreement for Fresenius Kabi and BD to hew to a 10-year supply and distribution agreement under which Fresenius Kabi will supply BD with a portfolio of intravenous solutions. Both BD and Fresenius Kabi plan to start offering the range of IV solutions in the U.S. later this year.
The companies declined to reveal financial and contractual terms of the transactions, though BD said in a news release that “BD will record an asset write-off related to the sale, which is expected to be immaterial to the company’s fiscal 2016 results. Excluding the write-off, the company expects the divestiture of BD Rx to be modestly accretive to fiscal 2016 adjusted diluted earnings per share,” whatever that means.
Prefilled injectable medicines are designed to help improve patient care and safety by decreasing the number of steps in the traditional vial and syringe injection sequence, reducing the potential risk of medication error.
“Ready-to-administer, prefilled syringes are a growing segment in health care due to increased focus on medication safety and labor-saving efficiency,” said John Ducker, president and CEO of Fresenius Kabi USA. “They are a natural complement to our portfolio, enabling us to offer customers more choices and a broader range of specialty injectable medicines in vials as well as ready-to-administer presentations.”
The North Carolina plant, which employs about 100 people, features advanced pharmaceutical manufacturing and packaging technologies, and was approved by the FDA in 2012. It currently produces seven drugs in ready-to-administer prefilled syringes and has capacity for future growth.
Fresenius Kabi said it expects to invest in the facility over time, making it a global center of excellence for prefilled syringe production. The two companies said they will work together to assure a smooth transition for employees and customers.
“We believe Fresenius Kabi is a better owner for the BD Rx business, because it complements their existing capabilities in the injectable pharmaceutical industry,” said Tom Polen, president of BD’s Medical Segment. “In addition, we look forward to working with Fresenius Kabi to extend our medication management strategy through the addition of a portfolio of IV fluids, which will broaden our clinical and economical end-to-end solutions for our customers and their patients.”
Fresenius Kabi (pronounced fre-ZEEN-ee-us COB-ee) currently maintains its U.S. headquarters in Lake Zurich, Illinois, a northwest Chicago suburb. The company’s global headquarters is in Bad Homburg, Germany.
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