Cambrex set to acquire Halo Pharma for $425m to expand into finished dosage form market

In a significant expansion of its capabilities, Cambrex Corporation has announced its agreement to acquire Halo Pharma, a US-based contract development and manufacturing organization (CDMO), for $425 million. This strategic move propels Cambrex into the lucrative finished dosage form CDMO market, complementing its existing strengths in small molecule and generic Active Pharmaceutical Ingredients (APIs).

Currently owned by SK Capital Partners among other investors, Halo Pharma specializes in the development and commercial manufacturing of oral solids, liquids, creams, sterile, and non-sterile ointments. The acquisition is poised to create a leading small molecule CDMO, broadening Cambrex’s range of capabilities and significantly enhancing its customer base.

Steve Klosk, President and CEO of Cambrex, emphasized the strategic fit: “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.”

Halo Pharma brings to Cambrex a robust portfolio of product development projects and a strong track record in regulatory compliance and quality. With over 100 product development projects for more than 70 customers, Halo is expected to generate over $100 million in annual revenue this year. The acquisition will not only enhance Cambrex’s service offerings but also its geographic footprint, with Halo operating GMP compliant facilities in Whippany, New Jersey, and Montreal, Québec.

Lee Karras, CEO of Halo Pharma, shared his enthusiasm about the merger: “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.”

The acquisition, subject to customary closing conditions, is anticipated to be completed during the third quarter of 2018. It represents a strategic alignment of Cambrex’s and Halo’s capabilities, which is expected to attract new customers and expand the pipeline of products while capitalizing on the rapidly-growing pharmaceutical services market. The combined workforce of nearly 1,650 employees across the US and Europe will aim to leverage their collective expertise to meet the expanding needs of their global customer base.