North American Biologicals Secures $165 Million Contract with Pharmaceutical Division of Miles Inc.

Strategic Insights -

North American Biologicals, Inc. (NABI) has been awarded a $165 million five-year plasma supply contract by the Pharmaceutical Division of Miles Inc. This contract replaces a pre-existing $35 million agreement, which had a remaining value of approximately $15 million. Under the terms of the new contract, NABI will supply Miles with a minimum of $165 million in source and specialty plasmas from 1995 through 2000. The expansion and renewal of this agreement reflects the surging global demand for high-quality plasma products, which NABI is well positioned to supply.

Key Takeaways:

  • NABI will supply Miles with a minimum of $165 million in source and specialty plasmas from 1995 through 2000.
  • The new contract replaces a pre-existing $35 million agreement, which had a remaining value of approximately $15 million.
  • Under the terms of the new contract, NABI will supply plasma at a fixed price for the first two years, after which pricing can be renegotiated to reflect market conditions, subject to certain minimums.
  • The European Association of the Plasma Products Industry predicts continued European dependence on U.S. plasma suppliers until well after 2000.
  • Europe currently relies on the United States for over 60 percent of its plasma products.
  • NABI's plasma collection operations encompass 69 locations, with 67 centers in 29 U.S. states and two in Germany.
  • Miles Inc. is a research-based company with major businesses in chemicals, healthcare, and imaging technologies.

Statistics:

  • $165 million: the value of the contract awarded to NABI by the Pharmaceutical Division of Miles Inc.
  • 5 years: the duration of the contract
  • $35 million: the value of the pre-existing contract
  • $15 million: the remaining value of the pre-existent contract
  • 29 percent: the increase in plasma collected by the U.S. commercial plasma industry in the past three years
  • 60 percent: the percentage of Europe's plasma products that come from the United States
  • 69 locations: the number of plasma collection centers operated by NABI
  • 29 U.S. states: the number of states in which NABI operates plasma collection centers in the United States
  • $6.5 billion: Miles Inc.'s sales in 1993

Sources:

  • "North American Biologicals, Inc. Announces $165 Million Plasma Supply Contract," PR Newswire, Feb. 23, 1995
  • "European Association of the Plasma Products Industry Study Reveals Continued Dependence on U.S. Plasma Suppliers," PR Newswire, Dec. 1994
  • "Miles Inc. 1993 Annual Report"
  • "North American Biologicals, Inc. Press Release"