Cambrex to purchase PharmaCore for $25 million

The acquisition will enable Cambrex to expand its clinical stage API manufacturing capabilities

Cambrex is to purchase PharmaCore for $25 million

Cambrex has agreed to buy PharmaCore, a privately-owned company specialising in manufacturing small molecule APIs for clinical phase projects, for $25 million.

PharmaCore employs more than 60 people and has a 35,000ft2 (3,250m2) GMP site in High Point, North Carolina, US.

The firm's revenue is $15–$17 million per annum, with EBITDA of just over $2 million.

PharmaCore develops and produces complex APIs and intermediates requiring multi-step synthetic processes in batch sizes from milligrams to 100 kg to support clinical trials from Phase I to Phase III.

The company is licensed with the US Drug Enforcement Administration (DEA) to manufacture Schedule II to Schedule V controlled substances.

PharmaCore's reactor capacity ranges from 20L to 2000L

The acquisition will enhance Cambrex’s small molecule API services and complements its large scale, multi-purpose manufacturing facilities in the US and Europe.

Steven Klosk, CEO of Cambrex, said the acquisition will provide 'the capability and expertise to efficiently develop early clinical phase products and new technologies'.

'We expect PharmaCore’s substantial customer base and robust project pipeline to broaden our potential late stage clinical development and commercial manufacturing opportunities,' he added.

By the end of this year, Cambrex will have invested more than $200 million in capital projects within its existing facilities.

The firm has recently completed $50 million production and warehousing expansion of its large scale US API facility in Charles City, Iowa.

An investment of $9 million has also beenmade to expand large scale manufacturing capacity at the firm's Karlskoga facility in Sweden, which is expected to be completed shortly.

The transaction is expected to be completed within 30 days.

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