Cambrex Expands API Services With PharmaCore
In a move to boost its portfolio of small molecule API services, US-based life sciences company Cambrex has agreed to buy PharmaCore for $25 million. With 60 employees, PharmaCore operates a laboratory and pilot plant with reactor capacity from 20 liters to 2,000 liters and supporting GMP analytical services at its site in High Point, North Carolina. The company develops and produces complex APIs and intermediates in support of Phase 1 to Phase 3 clinical trials in batches ranging from milligrams to 100 kg. It is also licensed with the US Drug Enforcement Administration (DEA) to manufacture Schedule II to Schedule V controlled substances.
PharmaCore’s annual revenues are in the range of $15-17 million with EBITDA of just over $2 million. Cambrex’s CEO, Steven Klosk, said the acquisition provides the capability and expertise to 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 commented.
The transaction is anticipated to complete by the end of October, subject to the usual closing conditions. Kosk added that through the end of 2016 Cambrex will have spent more than $200 million on capital projects. These include $50 million on a recently completed production and warehouse expansion at its large-scale API facility in Charles City, Iowa, as well as a $9 million investment to increase manufacturing capacity in Karlskoga, Sweden, which is due to complete shortly.