Pfizer Halts $350 Million Seagen Manufacturing Facility Construction Post-Acquisition

In December last year, Pfizer spent $43 billion to acquire Seagen, a biotechnology company based in Seattle.Seagen. CEO of PfizerAlbert BourlaSaid that this New York pharmaceutical giant not only got Seagen's "golden eggs," but also "acquired the goose that lays the golden eggs."

According to foreign media reports, Pfizer will halt the construction of a 270,000-square-foot factory previously being built by Seagen. The factory is located inSeagen13 miles north of the headquarters，Pfizer has confirmed the news.

Seagen has launched this manufacturing project to reduce its reliance on contract manufacturers and supply commercial and clinical products for its deep tumor pipeline.

"Pfizer regularly evaluates our production network to ensure that capacity is effectively utilized based on projected product demand. After careful assessment, we have made the difficult decision to halt construction of the plant," Pfizer said in a statement.

Pfizer stated that 120 employees of Seagen "will be affected" as they are working on the initial setup of the new plant. A spokesperson said the company will "make every effort" to relocate them to Seagen's headquarters in Bothell.

Pfizer's plan is to produce Seagen's commercial products at its large factory in Sanford, North Carolina, which is currently being expanded. Clinical production of the drugs Seagen is developing will take place at other sites within Pfizer's network.

Seagen said at the time that the company planned to invest $350 million in building this production base in April 2022, in order to "gain greater control and flexibility in the production of cancer-treating drugs."

According to HeraldNet, headquartered in Everett, Seagen leased the facility in 2021 and signed a $215 million agreement with a contractor in August 2022. Seagen plans to complete the project by the end of this year and stated that it will accommodate 200 workers.

Upon completion ofSeagen'sAfter the acquisition, Pfizer establishedOncology Business Unit, thereby integrating oncology commercialization and R&D operations, the department will be independently led by the company's former R&D director, Chris Boshoff.

[1]Pfizer stops buildout of Seagen plant, leaving 120 out of work (fiercepharma.com)

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