Will pay US$60m for site in Glasgow, UK and West Lafayette solid state chemistry business
Contract research and manufacturing organisation AMRI has acquired Aptuit's aseptic clinical manufacturing site in Glasgow, UK and has entered into a definitive agreement to acquire the company's SSCI/West Lafayette solid state chemistry business for US$60m in total.
The move will expand AMRI's drug product development and aseptic clinical manufacturing capabilities.
AMRI said Aptuit's Glasgow facility will add sterile injectable drug product formulation and clinical stage manufacturing to its capabilities.
The company said SSCI has a reputation for solving difficult drug substance and formulated drug product challenges and is an expert in solid-state chemistry and analytical services.
'We are very pleased to acquire these two facilities from Aptuit, which will further AMRI's expertise in drug product development and aseptic manufacturing services, two areas of our business where we are seeing the fastest level of growth,' said William Marth, AMRI's President and Chief Executive.
Aptuit's Glasgow operation strengthens our front end formulation expertise in our sterile injectable business
He said Analytical Services sits at the interface of API and Drug Product, providing critical support for all aspects of pharmaceutical development and manufacturing. The West Lafayette team brings extensive material science knowledge and technology to AMRI and will expand its capabilities in analytical testing to include peptides, proteins and oligonucleotides.
'Aptuit's Glasgow operation strengthens our front end formulation expertise in our sterile injectable business, further extending our parenteral offerings and providing customers a single source to address their sterile fill/finish needs from formulation complete to commercial supply,' said Marth.
'In addition, having a Glasgow base of operations provides us with an expanded footprint and customer base in Europe for our parenteral offerings, furthering one of our strategic goals.'
Jonathan Goldman, CEO of Aptuit, said the sale is part of its strategy to 'divest non-core assets and invest in its core competency of integrated early discovery to mid-phase drug development'.
'We will continue to deliver world-class drug discovery and development services from our fully integrated, former large pharma R&D centre of excellence in Verona, Italy, and our internationally renowned API facility in Oxford, UK,' he added.
The sale is part of Aptuit's strategy to divest non-core assets
'This transaction, which is part of our strategic initiative to grow our integrated offerings, will facilitate reinvestment in our core competencies and allow us to further differentiate our existing, unique capabilities and pursue strategic acquisitions,' he said.
Goldman explained that Aptuit has expanded by acquisition and organic growth and future announcements 'will describe new additions to our capabilities in discovery and non-clinical development, as well as innovative strategic partnerships'.
Under the terms of the agreement, AMRI has paid $24m for the Glasgow business. Subject to certain closing conditions, the company will pay the remaining $36m for the West Lafayette business and will 'assume certain liabilities related to that subsidiary'.
AMRI expects to complete the transaction early in the first quarter of this year. The company is financing the transaction with cash and borrowings under its expanded $75m revolving credit facility.
The Aptuit businesses are expected to contribute $25–$30m to AMRI's revenue and $5–$7m to adjusted EBITDA in 2015.