Move broadens AMRI's contract development and manufacturing capabilities for complex APIs
Global contract research and manufacturing organisation AMRI has signed a definitive agreement to acquire all the outstanding shares of Cedarburg Pharmaceuticals for US$38.2m in cash. The transaction, including $2.8m of assumed liabilities, is valued at $41m.The transaction is expected to close in early April 2014.
Located in Grafton, Wisconsin, Cedarburg Pharmaceuticals is a contract developer and manufacturer of technically complex active pharmaceutical ingredients (APIs) for both generic and branded customers. Its core capabilities include controlled substances, steroids, prostaglandins, vitamin D analogues, conjugation chemistry and inorganics for the analgesic, ophthalmology and oncology therapeutic areas. The company has provided API development and manufacturing support for 13 approved products and has a pipeline that includes multiple late stage products.
Cedarburg is expected to continue to operate independently within AMRI's API business unit. Chuck Boland, currently co-founder and executive vice president of business development, will lead the Cedarburg team and report to George Svokos, AMRI's senior vice president sales and general manager - API.
'We are very excited to be joining efforts with Cedarburg as they bring a unique blend of expertise in complex API, a scalable business infrastructure and extensive customer relationships that will augment our existing capabilities and services,' said William S. Marth, AMRI's president and chief executive officer. 'This transaction represents an important first step in building out our API capabilities, broadens our offerings and customer base and provides us with an ideal platform to pursue additional value creation opportunities.'