LGM Pharma Buys Nexgen Assets
Headquartered in Irvine, California, Nexgen specializes in the development and manufacture of solid dose, powder, semi-solid and liquid drugs. Its manufacturing and warehouse distribution facilities in California and Texas along with formulation development, laboratory and pilot plant manufacturing facilities in Colorado will transfer to LGM Pharma, along with 150 employees.
LGM Pharma said the combined entity will have all the capabilities needed to help pharmaceutical and biotechnology customers to accelerate and optimize the new product pathway, from early R&D and clinical development through manufacturing, regulatory submission, commercialization and distribution.
“This is a transformational acquisition that allows us to greatly expand the services we provide to a substantially enlarged customer base,” said LGM Pharma’s CEO Prasad Raje. “As part of our continued growth and diversification strategy LGM is committed to significant investment in both infrastructure and personnel as part of this acquisition, and with the current challenges facing the industry the timing for adding US-based drug product manufacturing capacity to LGM is ideal.”
Nexgen Pharma’s CEO Kyle Brown added that the divestment will allow the company to focus on its other healthcare segments.
Financial support for LGM Pharma’s acquisition was provided by New Harbor Capital, a Chicago-based private equity firm that took a majority stake in the Kentucky-based company in November 2017.
Supported by New Harbor’s capital investment, LGM Pharma acquired in March 2018 the compounding business of Zeta Pharmaceuticals.