Cambrex announces $425m acquisition of American CDMO Halo Pharma

Cambrex Corporation, a leading manufacturer of small molecules and generic Active Pharmaceutical Ingredients (APIs), has announced a strategic acquisition of Halo Pharma for $425 million. This move positions Cambrex into the large and finished dosage form contract development and manufacturing organization (CDMO) market. Halo Pharma, known for its expertise in oral solids, liquids, creams, and non-sterile ointments, was previously owned by SK Capital Partners and other investors.

The acquisition not only broadens Cambrex’s manufacturing capabilities but also significantly enhances its customer base and product pipeline in the pharmaceutical services sector. Halo Pharma brings to Cambrex a robust portfolio, including development and manufacturing of complex formulations, products for pediatric indications, and controlled substances, marking a significant expansion of Cambrex’s service offerings.

Halo Pharma operates two GMP compliant facilities located in Whippany, New Jersey, and Montreal, Québec, which will now function under the Cambrex umbrella. These facilities have been instrumental in handling more than 100 product development projects for over 70 customers and are estimated to generate more than $100 million in annual revenue as of 2018. Additionally, Halo Pharma’s 450 employees will join Cambrex’s existing workforce of 1,200 across the US and Europe, further strengthening its operational capabilities.

Steve Klosk, President and CEO of Cambrex, highlighted the strategic importance of this acquisition: “This acquisition opens a completely new segment of the market for Cambrex in finished dose development and manufacturing. Halo’s expertise fits well with our small molecule API business and brings a substantial new customer base and pipeline of small molecule products.”

Lee Karras, CEO of Halo Pharma, also expressed enthusiasm about the merger: “This transaction affirms our reputation 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.”

This acquisition is a clear indicator of Cambrex’s aggressive expansion strategy into more diversified pharmaceutical manufacturing. It not only enhances Cambrex’s ability to serve a broader range of pharmaceutical needs but also strengthens its position in the rapidly-growing pharmaceutical services market.