C2 Pharma buys out joint venture partner
Finance | Equipment | Research
Transaction will free up capital for new investment for all parties involved
Andrew Badrot, CEO of C2 Pharma
On 22 June, C2 Pharma acquired the remaining 50% of the shares in its joint venture from PAMA Holding, the investment vehicle of the Centroflora Group in Luxembourg. CEO Andrew Badrot is now the sole shareholder of C2 Pharma.
The transaction enables both parties to focus on their respective strengths:
- For the seller, the transaction will strengthen the cash flow of the Centroflora Group after their recent disposal of the food business to Givaudan and enable them to speed up their new investments in the Pharma segment (API and botanicals) on a global basis.
- For C2 Pharma, the shareholder consolidation will enable additional investments in new and innovative API manufacturing opportunities. The company is currently working on more than 10 R&D projects focusing on improving the manufacturing process for its current APIs as well as expanding its API portfolio.
- Additional investments in the company's two affiliates, ASM Research Chemicals and Logistics4Pharma, will accelerate their ability to fulfil their
true potential. For ASM, investments are currently under way that will treble its manufacturing capabilities for Peptide Nucleic Acids (PNAs).
Plans for GMP manufacturing are also ongoing. Logistics4Pharma is looking to expand in the USA, Brazil and India.
"This is another major milestone in the corporate development of C2 Pharma", commented Andrew Badrot, C2 Pharma's CEO. "At the eve of the fourth year anniversary after the acquisition of Boehringer Ingelheim's phytochemical API product portfolio, we found a common approach with my partners at Centroflora in Brazil to achieve our respective goals."
"C2 Pharma will now accelerate its growth initiatives and work on breakthrough API manufacturing technologies. We have exciting API and botanical extract opportunities to work on as well as a few additional acquisitions and investments on the horizon."