Cambrex to Acquire PharmaCore Inc., to Expand Clinical Stage API Capabilities
September 26 2016 - 5:45AM
Cambrex Corporation (NYSE:CBM), a leading manufacturer of small
molecule innovator and generic Active Pharmaceutical Ingredients
(APIs), today announced that it has agreed to acquire PharmaCore
Inc., a privately-owned company specializing in developing,
manufacturing and scaling up small molecule APIs for clinical phase
projects, for approximately $25 million. PharmaCore was founded in
1999 and occupies a 35,000 sq. ft. GMP site in High Point, North
Carolina, USA.
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 has more than 60 full
time employees, focused on projects at laboratory and pilot plant
scale, with nearly 40 lab-based Process and Analytical Chemists,
the majority of whom hold PhDs.
The acquisition will enhance Cambrex’s portfolio
of small molecule API services and complements its existing large
scale, multi-purpose manufacturing facilities in the US and Europe.
PharmaCore is currently generating $15 to $17 million per year in
revenues and just over two million dollars per year in EBITDA.
Cambrex expects the transaction, net of deal fees, to have a
neutral impact on earnings per share in 2016 and to be accretive in
2017.
“We are excited to announce our acquisition of
PharmaCore, which we believe underlines our commitment to
continually enhancing our service offering to our global
pharmaceutical and biotech customers. 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,” commented Steven Klosk, CEO of
Cambrex.
He added, “Through the end of 2016, Cambrex will
have invested over $200 million in capital projects within our
existing facilities, including a recently completed $50 million
production and warehousing expansion of our large scale US API
facility in Charles City, Iowa, and a $9 million investment to
expand large scale manufacturing capacity at our Karlskoga facility
in Sweden, which we expect will be completed shortly.”
Rob Maddox, President of PharmaCore added,
“PharmaCore is proud of the reputation we have developed, both as a
trusted CMO and a company with a strong track record of innovative
chemistry. We are thrilled to be joining Cambrex’s global network
and to have the opportunity to participate in Cambrex’s growth
strategy.”
PharmaCore’s NC facility has a 15,000 sq. ft.
chemistry laboratory and a 13,000 sq. ft. pilot plant, with reactor
capacity ranging from 20L to 2000L, with supporting GMP analytical
services.
The completion of the transaction is subject to
customary closing conditions, and is expected to occur within 30
days. PharmaCore was advised on this transaction by Wombat
Capital Markets, LLC.
Forward Looking StatementsThis
document contains "forward-looking statements," including
statements regarding expected impact of the PharmaCore acquisition
on earnings per share and other potential benefits of the
transaction. These and other forward looking statements may
be identified by the fact that they use words such as "expects,"
"anticipates," "intends," "estimates," "believes" or similar
expressions. Any forward-looking statements contained herein
are based on current plans and expectations and involve risks and
uncertainties that could cause actual outcomes and results to
differ materially from current expectations. The factors
described in Item 1A of Part I of the Company's Annual Report on
Form 10-K for the period ended December 31, 2015, captioned "Risk
Factors," or otherwise described in the Company's filings with the
SEC provide examples of such risks and uncertainties that may cause
the Company's actual results to differ materially from the
expectations the Company describes in its forward-looking
statements. Important factors include, but are not limited to, the
risk that the conditions required to consummate the transactions
described herein may not occur or may be materially delayed, the
risk that the expected benefits of the transactions may not be
realized to the extent we anticipate or at all, unexpected delays
in the completion of ongoing capital projects, pharmaceutical
outsourcing trends, competitive pricing or product developments,
market acceptance and adoption rate of our customers' products,
government legislation and regulations (including those pertaining
to environmental issues), tax rate, interest rate, technology,
manufacturing and legal issues, including the outcome of
outstanding litigation, environmental matters, changes in foreign
exchange rates, uncollectible receivables, the timing of orders or
shipments and the Company's ability to meet its production plan and
customer delivery schedules, expected timing of completion of
capacity expansions, loss on disposition of assets, cancellations
or delays in renewal of contracts, lack of suitable raw materials,
the Company's ability to receive regulatory approvals for its
products, continued demand in the U.S. for late stage clinical
products and the successful outcome of the Company's investment in
new products.
For further details and a discussion of these and other risks
and uncertainties, investors are encouraged to review the Cambrex
Annual Report on Form 10-K for the fiscal year ended December 31,
2015, including the Forward-Looking Statement sections therein, and
other filings with the SEC. The Company cautions investors
and potential investors not to place significant reliance on the
forward-looking statements contained in this press release and to
give careful consideration to the risks and uncertainties listed
above and contained in our SEC filings. The forward-looking
statements in this press release speak only as of the date of this
document, and the Company undertakes no obligation to update or
revise any of these statements.
About Cambrex Cambrex
Corporation is an innovative life sciences company that provides
products, services and technologies to accelerate the development
and commercialization of small molecule therapeutics. The
Company offers Active Pharmaceutical Ingredients (APIs), advanced
intermediates and enhanced drug delivery products for branded and
generic pharmaceuticals. Development and manufacturing capabilities
include enzymatic biotransformations, high potency APIs, high
energy chemical synthesis and controlled substances. For more
information, please visit www.cambrex.com.
Contact:
Alex Maw
Director, Marketing and Communications
Tel: +44 7803 443 155
Email: alex.maw@cambrex.com
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