West Pharmaceutical to spin-off drug delivery business

By Liz White, ERJ staff

Lionville, Pennsylvania-West Pharmaceutical Services Inc. is to sell a majority interest in its drug-delivery business to a new company formed by financial group Warburg Pincus. The deal is expected to be finalised early in 2005.

West-a global market leader in closure systems and syringe components for use with injectable drugs-announced that it would carry out a strategic review of its research-focused drug delivery activities back in June 2004.

“This agreement will result in significant new funding for the drug delivery technologies in partnership with world-class financial sponsors who understand the market for these technologies,” said Donald Morel, West's chairman and ceo, in a statement on the deal. The new arrangement will also allow West “to participate in the ultimate success of the business without committing further capital,” Morel added.

West management will be able to re-focus on, “building the long-term growth and profitability of West's pharmaceutical systems businesses,” Morel continued.