FiercePharma
Date: Jan 3, 2018
By: Eric Palmer
When Impax CEO Paul Bisaro started cutting costs at the financially struggling drug
Impax will sell its manufacturing site in Taiwan to Bora Pharmaceuticals, which will continue to produce Parkinson’s drug Rytary there. (Image: Impax Laboratories Taiwan)
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company, one move involved the “difficult decision” to let go of its once-troubled manufacturing site in Taiwan. Impax now has a buyer for the facility.
The 400,000 square-foot plant is being sold to Taiwan-based Bora Pharmaceuticals, which will pay Impax $18.5 million. Impax will take a Q4 2017 impairment charge of between $70 million and $80 million on the deal.
Bridgewater, New Jersey-based Impax also struck a supply agreement for Bora to produce some Impax products at the Taiwan facility, most importantly its Parkinson’s drug Rytary. Bora also got rights to sell Rytary in Taiwan. The deal is expected to close this quarter.
“This agreement accelerates the benefits we expect to receive as part of our cost improvement program and allows us to achieve a full run rate of cost savings across all program initiatives by the end of 2018, one year ahead of schedule,” said Bisaro in a statement. “Through this agreement, Impax gains a high-quality contract manufacturing partner with expertise in manufacturing for multinational pharmaceutical companies. The deal also aligns nicely with Bora’s international growth and expansion plans.”
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