Laboratorios Farmacéuticos Rovi, which goes by Rovi, has inked a deal with Bristol Myers Squibb that gives the Spanish CDMO a production facility in Phoenix alongside a five-year manufacturing pact.
With the deal for the Phoenix facility, Rovi adds 34,000 square meters (366,000 square feet) of manufacturing space to its portfolio. The site can can churn out high-potent cytotoxic products, vaccines, obesity drugs, monoclonal antibodies, biosimilars and antibody-drug conjugates, according to a company presentation (PDF).
The transaction features a production deal with BMS that calls for Rovi to receive a minimum of $50 million annually over five years, during which the CDMO will continue producing products for the pharma giant, the company said in a Sept. 29 press release.
A specific cost for the plant itself wasn’t disclosed.
“The acquisition of the facility will be made for a price which is not material for ROVI and will be subject to the fulfillment of certain customary conditions precedent set out for this type of transaction,” the company said in the release, adding that the deal is expected to close in the first half of 2026.
Since 2021, Rovi says BMS has pumped about $100 million into the Phoenix site, which is approved by the FDA, the European Medicines Agency and Japan’s drug regulator. The site is slated to add a new prefilled syringe line in 2027 that will boost capacity, according to Rovi's presentation.
Rovi, which was formed in 1995, gained global visibility during the COVID-19 pandemic when it partnered with Moderna to produce the mRNA-based vaccine Spikevax. The two inked a 10-year deal in 2022 that had Rovi supporting Spikevax production as well as cranking out Moderna’s follow-on COVID shots and other mRNA vaccines targeting respiratory syncytial virus and flu.
Like many CDMOs, Rovi saw a sharp fall-off in demand as the pandemic began to wane. Earlier this year, the company warned analysts that its 2024 profit estimates were about 10% to 15% too high, due mostly to lower activity in its contract manufacturing business.
The company had previously been the subject of reporting that its CDMO business was the target of a buyout. However, Rovi said last October that it would hold on to its manufacturing group due to “the strength, momentum and prospects of this business.”