Cambrex buys 51 per cent stake in Indian formulations firm Zenara Pharma, citing efforts to grow in emerging markets as key driver.
The New Jersey, US-based active pharmaceutical ingredient (API) and delivery tech firm paid $20m for its holding in Zenara, which will be renamed Cambrex Zenara, and said it will buy the remaining 49 per cent in early 2016.
CEO Steve Klosk said the investment “represents another significant step in Cambrex's strategic objective of enhancing our technology portfolio,” citing Zenara’s formulation and finished dosage capabilities as key motivations.
He also predicted that: “The combination of capabilities and technologies will make us a global leader in providing products for the approximately $1.5 billion NRT market.”
Cambrex Zenara president Ashok Narasimhan agreed, adding that Cambrex’ “history of supplying products to the NRT market [make it] a natural partner for Zenara” which, he continued, is launching a range of smoking cessation gum and lozenge products in India.
Cambrex’ focus on the technological and geographic opportunities Zenara will provide is unsurprising given that, in recent quarters , revenue from its core API business has been hit by price pressure and supply disruption.
The move, which significantly expands Cambrex’ formulation development capabilities, is the second the firm has used expand its business this year after its acquisition of German industrial biocatalysis specialist IEP in March.
It will be interesting to see what impact IEP has had on Cambrex’ wider business in the US firm’s third quarter results that are due to be announced later today.