Cambrex acquisition of Halo Pharma : US CDMO to be acquired for $425m
Cambrex acquisition of Halo Pharma : Cambrex has made a $425 million deal to buy US-based contract development and manufacturing organization (CDMO) Halo Pharma to gain entry into the large and finished dosage form CDMO market.
The US-based Cambrex is into manufacturing of small molecules as well as generic Active Pharmaceutical Ingredients (APIs). It will buy Halo Pharma from SK Capital Partners, the majority stakeholder of the US CDMO and also from other investors.
Halo Pharma is into drug product development in addition to commercial manufacturing services. The US CDMO particularly focuses on manufacturing oral solids, liquids, creams, sterile and non-sterile ointments.
Its main competencies include development and manufacturing of highly complex and difficult to manufacture formulations, products for pediatric indications and controlled substances.
Cambrex acquisition of Halo Pharma is likely to create a leading small molecule CDMO with a wide variety of capabilities with a robust customer base.
Business deal done. Photo courtesy of adamr at FreeDigitalPhotos.net.
Commenting on Cambrex acquisition of Halo Pharma, Steve Klosk – President and CEO of Cambrex, 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 has two GMP compliant facilities located in Whippany in New Jersey and Montreal in Québec.
The US CDMO is involved in more than 100 product development projects for 70 plus customers. It is estimated to generate in excess of $100 million in annual revenue in 2018
Halo Pharma has 450 employees who will join 1,200 employees working for Cambrex in the US and Europe.
Lee Karras – CEO of Halo Pharma, commenting on Cambrex acquisition 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.”
Based on meeting of customary closing conditions, Cambrex acquisition of Halo Pharma is likely to be wrapped up during Q3 2018.