3M sells pharma biz for $2.1bn
global drug making business for around $2.1bn (€1.6bn) in a
three-part deal.
The company, based in Minnesota, will sell its pharma operations in the US, Canada and Latin America to Tenesee-based Graceway Pharmaceuticals for $875m.
In addition, Swedish drugs group Meda AB will buy the European unit for $857m, and Australia's Ironbridge Capital and Archer Capital will acquire the Asian business, as well as operations in Australia and South Africa for $349m.
The manufacturer, also known for Post-It notes and Scotch tape, said it is divesting its drug development business to focus on products that take less time to develop and market. The company stated that the sale was the result of a review of strategic options for its branded pharmaceuticals business and immune response modifier (IRM) platform that was announced in April.
The company's pharma business, with 1,050 staff worldwide, develops, manufactures, and sells branded prescription drugs related to dermatology, women's health, sexual health, respiratory medicine and cardiology, and accounts for about three per cent of 3M's total sales.
Under the terms of the deals, the three buyers will acquire regional marketing and intellectual property rights for 3M's well-known branded pharmaceuticals, including Aldara - a drug efficient in the treatment of genital warts - the Tambocor heart drug and the Metro-Gel Vaginal gel for infections.
"These are great brands and products, and we believe they will thrive in today's very competitive pharmaceutical marketplace under the direction of their new owners, said Brad Sauer, executive vice president, 3M Health Care.
The firm will also provide the buyers with its drug delivery platforms - 3M has been focusing on inhalation research and has developed the first metered-dose inhaler (MDI). In addition, the company has expertise in transdermal technology development built upon the company's technology platforms in skin adhesion and 7-day application products.
The company does not disclose the pharma division's annual sales, but it is part of 3M's health-care unit, which posted almost $4.4bn in sales in 2005.
The company, formerly known as Minnesota Mining & Manufacturing, said it will continue to make health-care products after the sale, which is expected to close in the fourth quarter.
