Glaxo Wellcome Selling Production Unit To ChiRex

US contract manufacturing company ChiRex is to buy from UK-based GlaxoWellcome the latter's pharmaceutical production facility at Annan, Scotland. As part of the proposed deal, GW will award ChiRex a five-year contract of up to $450 million, of which $250 million is guaranteed, to supply certain pharmaceutical intermediates and active ingredients.

The proposed agreement calls for ChiRex to buy all the buildings, land and equipment at the 154-acre Annan site, comprising three main production buildings for L40 million ($6.6 million), plus certain working capital. ChiRex will continue to manufacture products currently made at Annan and plans to invest L30 million over five years to accommodate newly-contracted products and to modify the facility for general purpose manufacturing.