Manufacturer of small molecule innovator and generic APIs, Cambrex, has entered into a definitive agreement to acquire Halo Pharma — a dosage form contract development and manufacturing organisation (CDMO).
Acquisition
The deal is worth approximately $425 million and will enable Cambrex to enter the finished dosage form CDMO market through the creation of a small molecule CDMO with a broad range of capabilities and a robust customer base.
“We are excited to announce our acquisition of Halo, which underscores our commitment to providing comprehensive, best-in-class services to address the needs of our global pharmaceutical, biotech and generic customers,” commented Steve Klosk, president and CEO of Cambrex. “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. We believe the combination of Cambrex and Halo will attract new customers to the combined company and allow us to more efficiently broaden our pipeline of products, while continuing to capitalize on the rapidly-growing pharmaceutical services market.”
“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,” added Lee Karras, CEO of Halo Pharma. “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.”
Discussing the agreement, Aaron Davenport, chairman of Halo Pharma and managing director of SK Capital Partners, said: “We are proud of what has been accomplished by Halo under the leadership of CEO Lee Karras and CFO Barry Lederman and its entire management team. Halo is well positioned to continue to grow and flourish under Cambrex’s ownership, and we are confident they are the right owner to move the business into the next stage of its development. We wish Cambrex and the employees of Halo every success, and are excited to follow their accomplishments in the years to come.”