A publicly-traded, Princeton-based biopharmaceutical company.
Cytogen had a non-performing contract manufacturing/test division and their stock was slipping. They were hoping to maintain use of the facility to produce proprietary products, but had a lease they couldn’t break. So, while it needed to stop the losses, there was no easy exit strategy. Plus, the hard assets in the facility were worth only a fraction of what Cytogen had spent to get USDA approved there.
Equity Partners was retained and through our process generated initial offers in the $1 – $2 million range which and a resolution to the lease issue. Equity Partners continued negotiations, illustrating the opportunity cost prospective buyers would face while they tried to get their own facilities USDA approved and accumulate highly trained people.
Equity Partners was able to quickly negotiate two $4 million cash offers for the contract manufacturing / test division. Both provided partnerships with Cytogen that allowed for favorable agreements to continue manufacturing their proprietary products, retained management and employees, and resolved the lease obligations. Equity Partners negotiated a long-term lease between the buyer/partner and Cytogen’s landlord, allowing a transaction to close with Purdue Pharma. Cytogen’s stock price reacted very favorably.