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The acquisition will place Cambrex into the finished dosage form CDMO market.
On July 23, 2018, Cambrex announced it has entered into a definitive agreement to acquire dosage form contract development and manufacturing organization (CDMO) Halo Pharma for approximately $425 million in total cash consideration.
The acquisition will be funded with a combination of cash on hand and borrowings against Cambrex’s $500-million senior credit facility. Completion of the transaction is subject to customary closing conditions and is expected to occur during the third quarter of 2018.
With the acquisition of Halo, Cambrex will enter the finished dosage form CDMO market. Halo provides drug product development and commercial manufacturing services, specializing in oral solids, liquids, creams, sterile, and non-sterile ointments. Halo’s core capabilities include developing and manufacturing highly complex and difficult-to-produce formulations, products for pediatric indications, and controlled substances.
“This acquisition opens a completely new segment of the market for Cambrex in finished dose development and manufacturing,” commented Steve Klosk, President and CEO of Cambrex, in a company press release. “Halo’s expertise in oral solids, liquids, creams, and ointments fits well with our small-molecule [active pharmaceutical ingredient] business and brings a substantial new customer base and pipeline of small-molecule products.”
Halo operates two state-of-the-art, GMP-compliant facilities located in Whippany, NJ, and Montreal, Québec, Canada, comprising of 430,000 ft2of plant space. Cambrex reports that Halo is currently engaged in more than 100 product development projects for over 70 customers and is expected to generate over $100 million in annual revenue in 2018. The release also states that Halo’s 450 employees will join Cambrex’s 1200 employees across the United States and Europe.