Life sciences company Cambrex has signed a definitive agreement to purchase pharmaceutical services provider Halo Pharma for approximately $425m.
Halo Pharma is a contract development and manufacturing organisation (CDMO). It offers drug development and commercial manufacturing services with a focus on oral solids, creams, liquids, sterile and non-sterile ointments.
The company also develops and manufactures drug products intended for paediatric indications and controlled substances.
Cambrex expects the acquisition to help its foray into the finished dosage form CDMO market by providing various capabilities and an established customer base.
In addition, Halo’s expertise in oral solids, liquids, creams and ointments will complement Cambrex’s small molecule Active Pharmaceutical Ingredients (API) business through new customer networks and small molecule products pipeline.
Cambrex president and CEO Steve Klosk said: “This acquisition opens a completely new segment of the market for Cambrex in finished dose development and manufacturing.
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“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 capitalise on the rapidly-growing pharmaceutical services market.”
Halo operates two facilities, comprising a total plant space of 430,000ft2 in New Jersey, US, and Québec, Canada. It is currently working on more than 100 product development projects for about 70 customers.
The company is expected to generate more than $100m in annual revenue this year.
Halo Pharma CEO Lee Karras said: “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.”
Subject to customary closing conditions, the acquisition is expected to be completed during the third quarter of this year.
After the completion of the deal, Halo’s 450 employees will join Cambrex’s existing 1,200 staff across the US and Europe.