The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Italian founder of Freeport’s PharmaChem Technologies has successfully closed the deal to buy back the company from its French owner, and is now understood to be assessing potential expansion plans.

Tribune Business can confirm that Pietro Stefanutti, who sold the company to Groupe Novasep in September 2007, closed the re-purchase on October 1 this year.

“It’s a management buy back essentially, and Pietro Stefanutti is the beneficial owner,” one source confirmed.

Groupe Novasep confirmed the transaction in an October 2 press release that was slipped out very quietly, and has received no media attention at all. While it did not name Mr Stefanutti, Tribune Business was told he is the person referred to in the release.

Groupe Novasep, in its statement, said it had “completed the sale of the Bahamian facility and related business of its fully-owned subsidiary, PharmaChem Technologies (Grand Bahama) Ltd, to a local investor”.

Tribune Business exclusively revealed the deal, and Mr Stefanutti’s buy back/expansion plan, in a January 20, 2014, article.

This newspaper understands that Mr Stefanutti is contemplating a $60 million investment to expand the plant and start manufacturing hepatitis C drugs for US-listed company, Gilead.

Mr Stefanutti stayed on as PharmaChem’s president following the 2007 sale to Groupe Novasep. The deal’s closing was yesterday referenced by the Grand Bahama Chamber of Commerce’s president, Kevin Seymour, as one of his causes for “optimism” in Grand Bahama’s economic future.

And another source, speaking on condition of anonymity but aware of the deal, added: “It’s a good sign that investors are still confident in what we are doing in Grand Bahama.”

In its statement on the sale, Groupe Novasep said: “This facility produces a single product that is nearing the end of its life cycle, and does not afford long-term viability for the site.

“Furthermore, the manufacturing capabilities of this facility did not support Novasep’s core strategy, which aims to position Novasep as a global supplier of contract manufacturing services for the Life Sciences’ molecules, based on a network of multi-purpose synthesis facilities and differentiating technologies.

“In this context, the group has sold the facility together with its business to a local investor, who is focused on sustaining activity in the plant and maintaining local employment.”

Michel Spagnol, chairman and chief executive of Novasep, said: “The divesture of PharmaChem is part of Novasep’s strategy to refocus on our core business and assets, and to provide flexible and cost effective CMO services to the life sciences industry.

“I am glad to say that the divesture of this plant to a local investor is positive for both parties and PharmaChem’s employees.”

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.