The New York site will serve as the center for the Korean company's biologics focused contract development and manufacturing organization (CDMO) business for North America.
The facility, which has commercial-scale production capacity for biologics, was originally established in 1943 to answer the US government’s call for large scale production of penicillin.
The financial details of the transaction were not disclosed but Yonhap News Agency reported that Lotte is paying out US$160m for the facility.
The companies said they anticipate that the deal will be completed in the second half of 2022, subject to receipt of regulatory approvals and the satisfaction of other standard conditions.
Lotte to take on BMS employees and assets
Upon closing, Lotte will acquire the East Syracuse site’s operations and assets, which include the property, plant and equipment, as well as the workers and their technical capabilities and expertise.
Moreover, on finalization of the deal, under a newly-established CDMO relationship, Lotte will manufacture products for Bristol Myers Squibb (BMS) from the East Syracuse facility. Yonhap News Agency said that alliance was worth US$220m.
Over time, the Korean firm will use the facility to expand its CDMO offerings for the biopharma industry.
Hunki Lee, EVP of Lotte Corporation, said the plant would enable it to rapidly scale and expand its biologics CDMO business in North America. “We look forward to welcoming the talented team in East Syracuse to Lotte, and we intend to make significant investments to further enhance the facility and its capabilities to support our strategic growth objectives moving forward.”
The East Syracuse site will continue to operate as part of BMS’s manufacturing network until the closing of the deal.