The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Italian founder of Freeport’s PharmaChem Technologies plant is attempting to buy it back from its French owner, a move that if successful could result in its $60 million expansion.

Tribune Business can reveal that Pietro Stefanutti, who sold the company to Groupe Novasep in September 2007, will use the planned expansion to start manufacturing hepatitis C drugs for US-listed company, Gilead.

It is unknown how many jobs the expansion, if it occurs, will create, but the employment impact is likely to be significant.

And PharmaChem’s further expansion will represent a further boost for an island where there are hopes that its long-moribund economy may be on the verge of revival with the Sunwing, Island Outsourcers and other tourism-related deals.

Mr Stefanutti, who stayed on as Pharmachem’s president following the Novasep sale, did not respond to Tribune Business’s voice mail messages left last week seeking comment, but two Cabinet ministers and multiple private sector sources confirmed the potential deal was in the works.

Obie Wilchcombe, speaking in his capacity as MP for West End and Bimini, told Tribune Business that the Pharmachem deal had been discussed at Cabinet level, although no formal proposal had yet been received.

“It’s been discussed at the Cabinet level, and proposals have been sent in,” Mr Wilchcombe said. “They’re preparing a letter of due diligence to ensure the proposals have been scrutinised, and that’s when active negotiations will begin.... A formal proposal has not yet come to the table.”

Mr Wilchcombe’s comments, though, confirm that the PharmaChem deal is very much on the Government’s radar.

And the minister of tourism said Prime Minister Perry Christie was among those who had been briefed on the Pharmachem situation, adding that the deal - if concluded - would further boost Freeport’s standing as an industrial/manufacturing sector.

Mr Wilchcombe’s comment that a formal proposal on the PharmaChem buy back has yet to reach the Government indicates that Mr Stefanutti and Groupe Novasep are likely still finalising the commercial and legal terms of the transaction.

Khaalis Rolle, minister of state for investments, also confirmed the PharmaChem deal was being developed, telling Tribune Business: “I’m aware that there is some discussion taking place, but no application has come before the Government as yet.

“I suspect it would mean another indication of confidence in the economy, and not only the economy, but confidence in our approach to position, to place the Bahamas as a place for logistics, shipping and pharmaceuticals.”

Private sector sources are also aware of the PharmaChem situation, one telling Tribune Business: “Some kind of buy back is in the offing.”

PharmaChem, which has created more than 100 jobs since 2003, is US Food and Drug Administration (FDA) inspected. It manufactures and supplies antiretroviral API drugs (tenofovir disoproxil fumarate) for Gilead, which is used in the worldwide treatment of HIV/AIDS.

The company has plenty of room for expansion, as it currently only uses 22 acres of its 62-acre site.