Pfizer's (NYSE:PFE) loss is UPM's gain. On Wednesday, pharmaceutical giant Pfizer announced that it has agreed to sell Baltimore-based drug development and contract manufacturer UPM Pharmaceuticals its 500,000-square-foot commercial manufacturing facility in Bristol, Tenn.
The purchase will expand UPM's capacity for production of solid oral dosage tablets and capsules, as well as semi-solid creams and ointments. It also provides UPM a guaranteed revenue stream, as part of the agreement provides for UPM to continue manufacturing the products Pfizer was already producing at the plant, on Pfizer's behalf, for the next two years.
Purchase terms were not disclosed. Despite monetizing its investment in the plant, Pfizer shares received no benefit today -- declining 2.5% today to $28.28.
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