The Board of Consort has confirmed its unanimous intention to recommend a cash offer of US$652m for the acquisition
Photo as seen on Consort Medical company video
Recipharm and Consort Medical have reached an agreement on the terms of a Recipharm's cash offer for the UK-based global drug delivery and device company and integrated CDMO. The Board of Consort has confirmed its unanimous intention to recommend a cash offer of £505 million (US$652m).
Recipharm's aim is to become a leading global CDMO, targeting sales of almost $1bn. This target has been set amid consolidation in the fragmented CDMO industry, as pharmaceutical companies seek to reduce their fixed costs by rationalising supply chains and focusing on core R&D and sales capabilities. Consequently, they are turning to trusted partners with the necessary scale and breadth of technologies to support them through the drug development process and the subsequent commercial manufacturing and supply.
The organisations provide different products and services within the same value chain for a number of customers
Given these sector dynamics, and Consort's strength in pharmaceutical device development and manufacturing, Recipharm believes that the combination is an excellent match. Recipharm has been an admirer of Consort's innovative delivery technologies, which are complementary to Recipharm's capabilities in the development and commercial supply of both inhaled and sterile injectable finished dose forms.
The Aesica division provides expansion through additional capabilities and access to new customers. The combination of Consort's product portfolio and services with Recipharm's existing business will allow the enlarged organisation to become a best-in-class technology-based CDMO, positioning it to compete more effectively within a wider part of the value chain.
Commenting on the transaction, Thomas Eldered, CEO of Recipharm, said: "In our view, Bespak is already acknowledged as a leading drug device developer and manufacturer and is a perfect fit for Recipharm's broader pharmaceutical capabilities. The enlarged group will be able to provide finished dose forms in Bespak’s key technologies and provide customers with a far more integrated approach. The Aesica business will further expand our capabilities and capacities in both API and finished dose manufacturing whilst providing access to a new customer base.”
Given sector dynamics and Consort's strength in pharmaceutical device development and manufacturing, Recipharm believes that the combination is an excellent match
Commenting on the transaction, Christopher Brinsmead CBE, Chairman of the Board of Consort, said: “Consort’s leading technologies and market positions provide innovative solutions and products to a blue-chip customer base.”