Bankinter | The company is acquiring a drug manufacturing plant in the United States. The seller of the plant is Bristol Myers Squibb, and it is located in Phoenix, Arizona. Rovi has signed a manufacturing agreement with Bristol Myers Squibb for an initial term of five years and a minimum payment of $50 million for each year of the contract. The purchase price has not been disclosed, but according to Rovi, ‘the acquisition of the plant will be completed for an insignificant amount’. The transaction is expected to close in the first half of 2026.
Analysis team’s view: The acquisition is a way to establish an industrial presence in the US and avoid tariffs (100% for pharmaceutical products). Rovi does not break down its sales in the US. Bristol Myers Squibb is disposing of assets for a minimal amount in exchange for a manufacturing contract under which Rovi will supply it with drugs manufactured at the sold plant. The downside is the complexity of managing a factory in the US. News with no impact.
