Cambrex acquire API manufacturer in US

Cambrex to acquire API manufacturer in US

10:35 AM, 27th September 2016
Cambrex to acquire API manufacturer in US

EAST RUTHERFORD, US: Cambrex Corporation, a leading manufacturer of small molecule innovator and generic active pharmaceutical ingredients (APIs) has agreed to acquire PharmaCore Inc, a private company specializing in developing, manufacturing and scaling up small molecule APIs for clinical phase projects, for approx $25 million.

PharmaCore develops and produces complex APIs and intermediates requiring multi-step synthetic processes in batch sizes from milligrams to 100 kg to support clinical trials from Phase I to Phase III. The company is licensed with the US Drug Enforcement Administration (DEA) to manufacture Schedule II to Schedule V controlled substances. PharmaCore has more than 60 full time employees, focused on projects at laboratory and pilot plant scale, with nearly 40 lab-based Process and Analytical Chemists, the majority of whom hold PhDs.

The acquisition will enhance Cambrex’s portfolio of small molecule API services and complements its existing large scale, multi-purpose manufacturing facilities in the US and Europe. PharmaCore is currently generating $15 to $17 million per year in revenues and just over two million dollars per year in EBITDA. Cambrex expects the transaction, net of deal fees, to have a neutral impact on earnings per share in 2016 and to be accretive in 2017.

PharmaCore’s facility has a 15,000 sq. ft. chemistry laboratory and a 13,000 sq. ft. pilot plant, with reactor capacity ranging from 20L to 2000L, with supporting GMP analytical services.

“The acquisition will provide the capability and expertise to efficiently develop early clinical phase products and new technologies. We expect PharmaCore’s substantial customer base and robust project pipeline to broaden our potential late stage clinical development and commercial manufacturing opportunities,” said Steven Klosk, CEO of Cambrex.

“PharmaCore is proud of the reputation we have developed, both as a trusted CMO and a company with a strong track record of innovative chemistry. We are thrilled to be joining Cambrex’s global network and to have the opportunity to participate in Cambrex’s growth strategy,” added Rob Maddox, President of PharmaCore

PharmaCore was advised on this transaction by Wombat Capital Markets, LLC.

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