Abraxis BioScience Acquires Manufacturing Facility from Watson
LOS ANGELES -- Abraxis BioScience, Inc, an integrated, global biopharmaceutical company, today announced that it has acquired from Watson Pharmaceuticals, Inc. a sterile injectable manufacturing facility located in Phoenix, Arizona. This facility, which has the ability to manufacture lyophilized powders, suspension products, and aqueous and oil solutions, currently manufactures products for both Watson and other third parties. Under the terms of the agreement, Abraxis will serve as a contract manufacturer for certain injectable products currently manufactured in this facility for a specified period of time. Financial terms were not disclosed.
This fully-equipped facility is approximately 200,000 square feet and includes manufacturing as well as chemistry and microbiology laboratories. Abraxis expects that this facility, along with its manufacturing facility located in Melrose Park, Illinois, will manufacture for the global market the companyâ€™s current and future proprietary products such as ABRAXANEÂ® for Injectable Suspension (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) after completion of the planned separation of its proprietary product business â€“ Abraxis Oncology and Abraxis Research (the new Abraxis BioScience) from its hospital-based product business â€“ Abraxis Pharmaceutical Products (APP). Abraxis will continue to work closely with state and local officials to secure the necessary support to sustain long-term growth of this facility.
â€œSubsequent to the announcement of our pending separation, we have made a concerted effort to make strategic decisions that support the long-term viability and growth of each operation,â€ said Patrick Soon-Shiong, M.D., chief executive officer and executive chairman of Abraxis. â€œThe acquisition of this facility will allow us to expand our cGMP manufacturing capabilities to provide the necessary infrastructure for worldwide growth of the new Abraxis BioScience.â€
About Abraxis BioScience, Inc.
Abraxis BioScience, Inc. is an integrated global biopharmaceutical company dedicated to meeting the needs of critically ill patients. The company develops, manufactures and markets one of the broadest portfolios of injectable products and leverages revolutionary technology such as its nabâ„¢ platform to discover and deliver breakthrough therapeutics that transform the treatment of cancer and other life-threatening diseases. The first FDA approved product to use this nab platform, ABRAXANEÂ®, was launched in 2005 for the treatment of metastatic breast cancer. Abraxis trades on the Nasdaq Global Market under the symbol ABBI. For more information about the company and its products, please visit www.abraxisbio.com.
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include statements regarding our expectations, beliefs, hopes, goals, intentions, initiatives or strategies, including statements regarding our plans for the Phoenix manufacturing facility the planned separation of our proprietary product business from our hospital-based business. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include: our ability to comply with applicable FDA manufacturing requirements contained in the FDAâ€™s cGMP regulations; our ability to qualify the facility with the FDA with respect to our products; the ability to obtain a private letter ruling from the IRS on the tax-free nature of the separation and related transactions; the ability to obtain the necessary debt financing arrangements; risks that the proposed separation disrupts current plans and operations and the potential difficulties in employee retention; and the ability to recognize the benefits of the transactions contemplated by the separation of the businesses. Additional relevant information concerning risks can be found in Abraxis BioScience's Form 10-K for the year ended December 31, 2006 and other documents it has filed with the Securities and Exchange Commission.
The information contained in this press release is as of the date of this release. Abraxis assumes no obligations to update any forward-looking statements contained in this press release as the result of new information or future events or developments.