API maker BioVectra has been acquired by autoimmune disease focused drugmaker Questcor Pharmaceuticals for C$50m.
Canada-based contract manufacturing organisation (CMO) BioVectra makes chemical intermediates, bioprocessing reagents and active pharmaceutical ingredients (API) for a variety of drug firms, including Questcor which it has supplied since 2005 .
The deal – further terms of which were not disclosed – secures supplies of the API for Questcor’s purified preparation of adrenocorticotropic hormone (ACTH), HP Acthar, and position’s the firm for expansion according to Don Bailey.
"We are excited to join efforts with BioVectra as we look to diversify our revenue" he said, adding that "this action puts us in a better position to meet the continuing growth in demand for Acthar, brings to our company a broader depth of technical and scientific expertise, and provides us with a platform for potential international expansion.”
Biovectra CEO Ron Keefe was similarly positive, telling local paper the Charlottetown Guardian that “It's a good thing for our company at BioVectra. One of the things we've found over the years is we really need to access to capital if we are to continue to grow."
He added that Biovectra, its management team and its 185-strong workforce will retain its independence.
Analysts at Zacks Equity Research took a similar view, writing that: “We are positive on the upcoming acquisition of BioVectra, which is expected to be immediately accretive to earnings. The deal provides vertical integration and will help strengthen the Acthar manufacturing process.”
In addition to securing stock of the Acthar active, the takeover also gives Questcor access to BioVectra’s existing business relationships, which includes its bioprocessing reagents distribution deal with US chemical services firm Doe and Ingalls.