Medchem (P.R.), Inc. - Page 18




                                       - 18 -                                         
          petitioners decided to move during the fall of 1990 the Avitene             
          manufacturing process (including the manufacturing equipment)               
          from Alcon P.R.’s Puerto Rico facility to MedChem U.S.A.’s idled            
          Amvisc facility in Woburn.6  Such a move would and did require              
          MedChem U.S.A. to make additional leasehold improvements in order           
          to conform the Amvisc facility to Avitene’s manufacturing                   
          requirements.  Fifth, MedChem P.R. attempted to sell the land in            
          Juncos that it had purchased for the site of the proposed                   
          facility.  Sixth, as of July 1, 1990, MedChem U.S.A. employees              
          wrote all of MedChem P.R.’s checks in Woburn and mailed those               
          checks from Woburn to the payees.                                           
               Petitioners moved the equipment used to process corium into            
          bulk flour into MedChem U.S.A.’s Woburn facility in June 1990.7             
          Within 7 months, they moved into that facility all or part of the           
          frozen corium and the equipment used to process bulk flour into             




               6 MedChem U.S.A. eventually constructed a bulk Avitene                 
          manufacturing facility in Woburn in June 1992 and began producing           
          bulk Avitene there 4 months later.  In July 1993, MedChem U.S.A.            
          began constructing an Avitene finished goods manufacturing                  
          facility in Woburn; at that time, Alcon P.R. performed that part            
          of the Avitene manufacturing process at its facility in Puerto              
          Rico pursuant to the processing agreement.  MedChem U.S.A.                  
          substantially completed construction of the latter project in               
          April 1994, at which time MedChem U.S.A. controlled Avitene’s               
          entire manufacturing process.                                               
               7 At that time, the manufacturing of work-in-process was               
          completed and the machinery and equipment used in that process              
          disassembled and also readied for moving to Woburn.                         





Page:  Previous  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  Next

Last modified: May 25, 2011