Pharmaceutical Business review

Permira to buy small molecule company Cambrex for £1.97bn

Image: Permira has agreed to acquire to small molecule company Cambrex. Photo: courtesy of Horst Tinnes from Pixabay.

As per terms of the merger deal, Cambrex shareholders will secure $60 (£49.3) in cash for each share of Cambrex common stock, representing a 47.1% premium to its closing stock price on 6 August.

Permira global healthcare group principal Henry Minello said: “Over many years, Cambrex has built a leading position with best-in-class capabilities and facilities, backed by an excellent reputation for quality and technical expertise.”

Cambrex is a major contract development and manufacturing organisation, which offers drug substance, drug product and analytical services across the drug lifecycle.

The company collaborates with customers on the research, development and manufacturing of small molecule therapeutics. It is a major partner in branded and generic markets for API and dosage form development and manufacturing.

It provides a range of specialist drug substance technologies and capabilities such as biocatalysis, continuous flow, controlled substances, solid-state science, material characterisation and highly potent APIs.

The company will manufacture conventional dosage forms such as oral solids, semi-solids and liquids, as well as holds capacity to produce specialist dosage forms such as modified-release, fixed-dose combination, pediatric, bi-layer tablets, stick packs, topicals, controlled substances, sterile and non-sterile ointments.

With a team of more than 2,000 experts, Cambrex serves global clients from its sites located in North America and Europe.

Subject to customary closing conditions, the deal is expected to be completed in the fourth quarter of this year.

Cambrex president and CEO Steve Klosk said: “We are excited to announce this transaction with Permira, a global private equity firm that has made significant investments in the pharma services space.  This agreement is a strong endorsement of our strategy and represents significant value for our shareholders.”

Cambrex acquired Halo Pharma in 2018 and Avista Pharma Solutions this year to add a full range of early-stage and analytical testing services, helping to expand its drug substance manufacturing capabilities.