AmerisourceBergen puts former PharMEDium Memphis facility and equipment up for sale
A spokesperson for AmerisourceBergen Corp. confirmed its former PharMEDium operations located at 6100 Global Dr. in Memphis is for sale.
CBRE Memphis is listing the property, and a representative of that firm said the sale list price is $5 million.
Boston-based Tiger Group, in partnership with Liquidity Services and Perry Videx, is marketing the equipment for sale from the Memphis facility, as well as PharMEDium’s former Texas facility.
“In addition to industry-specific compounding and syringe-filling applications, the assets in the two facilities offer compelling opportunities for laboratories, and a wide range of manufacturing, warehousing, and distribution, and office markets,” John Coelho, senior director at Tiger Group, said in a release.
According to Shelby County property records, the 122,000-square-foot PharMEDium facility was built in 2008 on land the company acquired in 2007 for about $2.8 million.
Since 2008, a total of $4.3 million in additions and improvements have been made to the facility, based on building permits filed with Shelby County.
In February 2020, AmerisourceBergen Corp. — a Fortune 500 company — filed a Worker Adjustment and Retraining Notification Act (WARN) notice for its PharMEDium business in Southeast Memphis.
AmerisourceBergen announced in January 2020 its intention to close the facility in Memphis. It had been idled in December 2017 due to needed remediation efforts to meet U.S. Food and Drug Administration (FDA) requirements.
Over the first six months of 2018 alone, AmerisourceBergen spent $38 million on remediation efforts at the Memphis facility due to drug recalls related to sterility concerns.
PharMEDium made compounded sterile preparations (CSP) of drugs in doses not commercially available, and at one time, employed more than 400 people in Memphis. More than half those workers were laid off in January 2019.
The WARN notice in early 2020 noted the remaining 167 PharMEDium workers in Memphis would be laid off, beginning April 20.
On AmerisourceBergen’s earnings call Jan. 30, 2020, CFO Jim Cleary, said the PharMEDium business was not sellable due to “ongoing regulatory challenges; continued operational issues; continued challenges to keeping the remediation timetable, which was extending; and the continued financial burden of running the business.”