Astellas Announces Transfer of
U.S. Manufacturing Subsidiary to Avara
Tokyo, August 4th, 2016 -- Astellas Pharma Inc. (TSE: 4503, President and CEO: Yoshihiko
Hatanaka,
“Astellas”) today announced that Astellas’ US holding company, Astellas US
Holding, Inc. (“Astellas US Holding”), has transferred its wholly owned manufacturing
subsidiary Astellas Pharma Technologies, Inc. (Location: Norman, OK, USA, “APT”) to Avara
Norman Pharmaceutical Services, Inc. (Headquarters: Norwalk, CT, USA, “Avara”). Astellas
Pharma Technologies, Inc. will be renamed Avara Pharmaceutical Technologies, Inc.
“We sincerely thank the Astellas Pharma Technologies employees in Norman for their
dedication over many years of service. In addition, I am very grateful for the way they have
kept our operation running smoothly through the last months of uncertainty as we searched for
the right buyer -- and we wish them the best as they transition to Avara,” said Mitsunori
Matsuda, president of Technology at Astellas. “We have confidence that Avara is the right
company to oversee the continuing supply of the Astellas products that are made at the facility,
as well as the fulfillment of capacity use at and capabilities of the facility. We look forward to
working with Avara as the new owner of the facility to ensure the continuous supply of our
products for the patients who need them.”
Astellas is engaged in ongoing efforts to create organizations and systems that can flexibly
respond to rapidly changing environments and work toward higher quality and efficiency of
operations. In the areas of manufacturing and technology, Astellas strives to promote the
establishment of a stable manufacturing system that will efficiently realize the steady supply of
high-quality drugs through the effective use of external resources and the strengthening of
Astellas’ own internal functions. As a part of these efforts, Astellas has transferred APT, which
owns the plant used for the formulation and packaging of certain Astellas pharmaceutical
products, to Avara.
Under the terms of the transaction, APT employees will remain employed at the site, and the
plant will continue to manufacture certain Astellas products on a contract basis.
Astellas expects to continue to source a stable supply of high-quality products from the facility
under the oversight of Avara.
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Deloitte Corporate Finance served as financial advisor to Astellas in connection with the
transaction.
1. Financial terms of this deal
Financial terms including the value of this acquisition are not disclosed.
2. Outline of APT and the Norman Plant
Astellas Pharma Technologies, Inc.
Location : Norman, OK, USA
Representative : Brian McLellan, President
Capital : 100% owned by US holding company, Astellas US Holding, Inc.
Business description : Manufacturing of pharmaceutical products
Norman Plant
Site area : Approx.810,000 m
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Building area : Approx.29,000 m
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Total number of employees :
Approx.200 (as of June 2016）
3. Outline of Transferee
Company name : Avara Norman Pharmaceutical Services, Inc.
Head office : Norwalk, CT, USA
Representative : Timothy C. Tyson, Chairman, Chief Executive Officer
Capital : Avara US Holdings, Ltd. 100%
Business description : Contract manufacturing of pharmaceutical products
In line with the transfer of APT, Astellas expects approximately ¥9.0 billion of one-time
expenses including impairment loss of plant and equipment, among others, for the second
quarter ending September 30, 2016. Astellas doesn’t revise the full-year consolidated business
forecasts for FY2016 (April 1, 2016 to March 31, 2017) announced in May 2016.
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About Astellas
Astellas Pharma Inc., based in Tokyo, Japan, is a company dedicated to improving the health of
people around the world through the provision of innovative and reliable pharmaceutical products.
We focus on Urology, Oncology, Immunology, Nephrology and Neuroscience as prioritized
therapeutic areas while advancing new therapeutic areas and discovery research leveraging new
technologies/modalities. We are also creating new value by combining internal capabilities and
external expertise in the medical/healthcare business. Astellas is on the forefront of healthcare
change to turn innovative science into value for patients. For more information, please visit our
website at www.astellas.com/en.
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Cautionary Notes
In this press release, statements made with respect to current plans, estimates,
strategies and beliefs and other statements that are not historical facts are
forward-looking statements about the future performance of Astellas. These statements
are based on management’s current assumptions and beliefs in light of the information
currently available to it and involve known and unknown risks and uncertainties. A
number of factors could cause actual results to differ materially from those discussed
in the forward-looking statements. Such factors include, but are not limited to: (i)
changes in general economic conditions and in laws and regulations, relating to
pharmaceutical markets, (ii) currency exchange rate fluctuations, (iii) delays in new
product launches, (iv) the inability of Astellas to market existing and new products
effectively, (v) the inability of Astellas to continue to effectively research and develop
products accepted by customers in highly competitive markets, and (vi) infringements
of Astellas’ intellectual property rights by third parties.
Information about pharmaceutical products (including products currently in
development) which is included in this press release is not intended to constitute an
advertisement or medical advice.
Contacts for inquiries or additional information
Astellas Pharma Inc.
Corporate Communications
TEL: 03-3244-3201 FAX: 03-5201-7473
http://www.astellas.com/en
For U.S. Media Inquiries :
Marjorie Moeling
224-205-5205
