Cambrex to acquire US CDMO Halo Pharma for $425m
Cambrex has agreed to acquire Halo Pharma, a US CDMO (contract development and manufacturing organization), for $425 million to foray into the large and growing finished dosage form CDMO market.
Also based in the US, Cambrex is a manufacturer of small molecules and generic Active Pharmaceutical Ingredients (APIs). It will be acquiring Halo Pharma from the majority stakeholder SK Capital Partners and other investors.
Halo Pharma offers drug product development and commercial manufacturing services. The US CDMO specializes in oral solids, liquids, creams, sterile and non-sterile ointments.
Its key competencies are developing and manufacturing highly complex and difficult to create formulations, products for pediatric indications and controlled substances among others.
Cambrex acquisition of Halo Pharma is expected to result in a top small molecule CDMO with a wide range of capabilities and a strong customer base.
Small molecules manufacturer Cambrex to acquire US CDMO Halo Pharma for $425m. Photo courtesy of Stuart Miles at FreeDigitalPhotos.net.
Steve Klosk – President and CEO of Cambrex on the acquisition of the US CDMO, said: “This acquisition opens a completely new segment of the market for Cambrex in finished dose development and manufacturing. Halo’s expertise in oral solids, liquids, creams and ointments fits well with our small molecule API business and brings a substantial new customer base and pipeline of small molecule products.
“We believe the combination of Cambrex and Halo will attract new customers to the combined company and allow us to more efficiently broaden our pipeline of products, while continuing to capitalize on the rapidly-growing pharmaceutical services market.”
Halo Pharma runs a couple of GMP compliant facilities in Whippany, New Jersey and Montreal, Québec.
The US CDMO is engaged currently in over 100 product development projects for more than 70 customers. It is expected to earn more than $100 million in annual revenue this year.
The US CDMO has a workforce of 450 people who will add to the 1,200 employees of Cambrex, working across the US and Europe.
Lee Karras – CEO of Halo Pharma said: “This transaction affirms the reputation we have developed as a trusted CDMO with a strong track record of regulatory compliance and quality, technical expertise and growth.
“We are very excited to be joining the Cambrex team and look forward to growing the combined company together and providing our customers the expansion of services this creates.”
Cambrex acquisition of Halo Pharma, which is subject to customary closing conditions, is anticipated to be completed during Q3 2018.