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.
â€œThis 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,â€ said Donald Morel, West's chairman and ceo, in a statement on the deal. The new arrangement will also allow West â€œto participate in the ultimate success of the business without committing further capital,â€ Morel added.
West management will be able to re-focus on, â€œbuilding the long-term growth and profitability of West's pharmaceutical systems businesses,â€ Morel continued.