Cambrex bolstering API services through $25m PharmaCore acquisition
The deal will boost Cambrex Corporation’s small molecule active pharmaceutical ingredient (API) portfolio by adding privately-owned PharmaCore, including a 35,000 sq ft facility in High Point, North Carolina.
PharmaCore develops and produces clinical batches of complex APIs and intermediates, and is licensed with the US Drug Enforcement Administration (DEA) to make Schedule II to Schedule V controlled substances, covering most drug products other than those deemed to have no currently accepted medical use and a high potential for abuse.
“The PharmaCore acquisition will provide the capability and expertise to efficiently develop early clinical phase products and new technologies,” Cambrex CEO Steven Klosk told in-Pharmatechnologist.com.
“We believe that these earlier stage projects are best performed in a stand-alone facility with dedicated resources, avoiding the inevitable competition for resources with larger-scale projects that happens when they are under the same roof.”
The deal creates the opportunity to leverage the combined capabilities across both Cambrex and PharmaCores’s customer bases, he continued.
“We expect PharmaCore’s substantial customer base and robust project pipeline to broaden our potential late stage clinical development and commercial manufacturing opportunities.”
He added: “We do not anticipate any job losses and all 62 PharmaCore employees will continue in their existing roles post-closing.”
The news comes off the back of a number of investments by Cambrex which commenced operations at a third API plant at its site in Charles City earlier this year, and told us in July it was commencing work on a fourth $20m to keep ahead of the capacity utilisation curve.
This followed a $50m injection at the site in 2015 which the firm said was essential to fulfil demand from its customers, and ensure continued topline growth within the company.
And earlier this month Cambrex announced plans to add large-scale manufacturing capabilities at a production site in Karlskoga, Sweden.
“Cambrex will continue to review acquisitions, both within the API space and peripheral market areas, as part of its strategy to be the number one small molecule API CMO,” Klosk said. “We continue to have ample financial capacity to complete both small and large acquisitions.”
The deal is expected to close within 30 days.
