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news.West Pharmaceutical Services has completed the sale of a substantial majority interest in its drug delivery business to Archimedes Pharma, a new UK-based European specialty pharma company backed by equity firm Warburg Pincus.
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West received $7.1 million cash, approximately 14% of the stock of Archimedes Pharma, and a royalty interest in certain of Archimedes Pharma’s revenues in exchange for substantially all of its drug delivery assets.
As West Pharmaceutical Services announced in December, the company is entitled to earn up to $19 million of contingent payments, based on royalties or other net profits.
West Pharmaceutical Services’ drug delivery division will now wind down and be classified as “discontinued operation” in the company’s subsequent financial reports. The company will continue to operate its clinical services business, which is being held for sale or other disposition.
Archimedes Pharma will operate the drug delivery business from West’s facility in Nottingham, England, and will employ all of the division’s employees at that location, although approximately 30 jobs are expected to be cut.