 "Cambrex acquires PharmaCore to expand clinical stage API capabilities")
Cambrex Corporation, the manufacturer of small molecule innovator and generic active pharmaceutical ingredients (APIs), has agreed to acquire PharmaCore Inc, a privately-owned company specialising in developing, manufacturing and scaling up small molecule APIs for clinical phase projects, for approximately $ 25 million. PharmaCore, founded in 1999, occupies a 35,000 sq ft GMP site in High Point, North Carolina, USA.
PharmaCore develops and produces complex APIs and intermediates requiring multi-step synthetic processes in batch sizes from milligrams to 100 kg to support clinical trials from Phase I to Phase III. The company is licensed with the US Drug Enforcement Administration (DEA) to manufacture Schedule II to Schedule V controlled substances.
The acquisition will enhance Cambrex’s portfolio of small molecule API services and complements its existing large scale, multi-purpose manufacturing facilities in the US and Europe. PharmaCore is currently generating $ 15 to $17 million per year in revenues and just over two million dollars per year in EBITDA. Cambrex expects the transaction, net of deal fees, to have a neutral impact on earnings per share in 2016 and to be accretive in 2017.
“The acquisition will provide the capability and expertise to efficiently develop early clinical phase products and new technologies. We expect PharmaCore’s substantial customer base and robust project pipeline to broaden our potential late stage clinical development and commercial manufacturing opportunities,” commented Steven Klosk, CEO of Cambrex.
He added, “Through the end of 2016, Cambrex will have invested over $200 million in capital projects within our existing facilities, including a recently completed $50 million production and warehousing expansion of our large scale US API facility in Charles City, Iowa, and a $9 million investment to expand large scale manufacturing capacity at our Karlskoga facility in Sweden, which we expect will be completed shortly.”