NEW CHALLENGE FOR AN OLD PLANT

Abstract

CHEROKEE PHARMACEUTICALS’ story has three main characters: a new company, its neophyte owner, and its biggest customer. A tale that opened with a spur-of-the-moment business decision is now, in its later chapters, about turning a big pharma company’s production site into a contract manufacturing business. Merck & Co. had operated its site in Riverside, Pa., for almost six decades. But by late 2005, like other drugmakers that were shrinking their manufacturing footprint, Merck was looking to rid itself of this and other underused facilities. Enter PRWT Services, a back-office business services and facilities management company founded by Willie F. Johnson, an African American businessman. While making a proposal to manage some Merck facilities up for sale, Johnson spontaneously decided to bid on the Riverside site. Although the decision was sudden, several factors made it appealing, says Stratton Lee, PRWT executive vice president for business development, including an entrance into the life sciences marke...