3M Reaches Agreements to Sell its Pharmaceuticals Business

3M announced that it has entered into agreements to sell its global branded pharmaceuticals business for approximately $2.1 billion in the following regions:

Graceway Pharmaceuticals Inc. has agreed to acquire 3M's pharmaceutical operations in the United States, Canada, and Latin America region for $875 million.

Meda AB has agreed to acquire 3M's pharmaceutical business in Europe for $857 million. The agreement will be implemented by each 3M subsidiary subject to compliance with third party notice and approval requirements.

Ironbridge Capital and Archer Capital have agreed to acquire 3M's pharmaceutical operations in the Asia Pacific region, including Australia and South Africa for $349 million.

The agreements are the result of a review of strategic options for the branded pharmaceuticals business and its immune response modifier (IRM) platform that 3M announced in April. Under the agreements, the purchasers will acquire regional marketing and intellectual property rights for 3M's branded pharmaceuticals. 3M's Drug Delivery Systems Division will be a source of supply to the acquiring companies for the products. As part of the transaction, Graceway Pharmaceuticals also will acquire the rights to certain IRM molecules.

The transactions are scheduled to close in the fourth quarter, subject to customary closing conditions, including regulatory approvals, and in the case of Graceway Pharmaceuticals, and Ironbridge Capital and Archer Capital, the receipt of financing. 3M will record a gain related to the transactions, and in addition, will incur various restructuring charges as it continues to align to drive growth and improve productivity.