Will enable the firm to expand further into the growing pharmaceutical outsourcing market for formulation development and manufacturing services
Columbia Laboratories is to acquire Molecular Profiles, a Nottingham, UK-based pharmaceutical development services company, for about US$25m.
The deal includes $16.7m in cash and 1,051,323 shares of Columbia common stock, which are subject to a 12-month lock up period, and represent x10 to x11 Molecular Profiles’ expected EBITDA for its fiscal year ending 31 July 2014.
Boston, US-based Columbia Laboratories says the move will enable it to expand further into the growing pharmaceutical outsourcing market for formulation development and manufacturing services.
The deal has been unanimously approved by both boards of directors and Molecular Profiles’ shareholders.
As part of the acquisition, Molecular Profiles’ CEO and co-founder, Nikin Patel, will join Columbia’s Board.
'This transaction represents an exciting step in Columbia’s ongoing transformation, and has numerous strategic advantages,' said Frank Condella, President and CEO of Columbia Laboratories.
'We are broadening our technical expertise with a management team that is well-recognised in the field of pharmaceutical development and analytical services,' he said.
This transaction represents an exciting step in Columbia’s ongoing transformation, and has numerous strategic advantages
'By transitioning CRINONE quality management and technical support to Molecular Profiles, within close proximity of our CRINONE manufacturing sites and supply chain management in Europe, we anticipate significant improvements in efficiencies and greater responsiveness to Merck Serono, our largest customer for CRINONE.'
Patel said: 'Our senior technical staff’s breadth of industrial and CRO experience spanning formulation, manufacturing, analytical and materials science should enable Columbia to realise significant efficiencies in its management of the CRINONE manufacturing process. And, with Columbia’s headquarters in Boston, we look forward to being able to serve our US customers much more effectively and have greater access to the US market.'
In July, Molecular Profiles opened a new £9m facility of 30,000ft2 in Nottingham to handle a range of non-sterile dosage forms such as solids, liquids, semi-solids and inhaled products.
The investment added six GMP suites, new laboratories and a dedicated clinical packing area to support Phase I and II clinical trial projects.