South Korea’s Lotte Group has acquired a Bristol-Myers Squibb pharmaceutical plant in the United States for $160 million to support the group’s pharmaceutical ambitions.
The South Korean group, which is foraying into the biopharmaceutical contract manufacturing business, has acquired the BMS facility, becoming the center of Lotte Group’s US operations.
Under the deal, which is expected to close in the second half of 2022, Lotte will continue to manufacture Bristol-Maiser biosimilars from the plant as part of a strategic relationship, as the deal includes property, equipment and manpower at the plant.
Founded in 1967, Lotte Group is the fifth-largest conglomerate in Korea, with a hand in the food and beverage, retail, chemical, hotel and service sectors.
A Bristol-Myers Squibb spokesperson said the plant employs approximately 420 Bristol-Myers employees with direct support from more than 100 contractors on site.
The company added that over time, Lotte plans to use the facility as a base from which to grow its product offering.
The two companies said the plant will continue to operate as part of BMS’s manufacturing network until the deal is closed.
On its website, Bristol-Myers says the facility offers four commercial biologics—Opdivo, Yervoy, Nulojix and Empliciti—and was set up in 1943 to respond to the US government’s call for large-scale production of penicillin.
Bristol-Myers Squibb said earlier this month that it achieved a 5% growth in revenue during the first quarter of this year, to reach $11.6 billion.
The company noted that the results of the first quarter of 2022, reflect strong growth in direct products, increased adoption of new products and strong commercial implementation.
The growth in Bristol-Mary’s Squibb revenue was driven by Revlimid, Eliquis and Opdivo, the latest Bristol-Mary’s Squibb family of products.
Revenue from the US market increased 10% to $7.7 billion in the quarter, while international revenue decreased 3% to $4.0 billion.