Ipca establishes foothold in US market with CMO purchase

17-Jan-2018 - Last updated on 19-Aug-2019 at 09:53 GMT

(Image: Getty/Ruskpp)

Ipca Laboratories, a fully-integrated Indian pharmaceutical company, has purchased an NC-based CMO in a $9.65m deal that will enable it to manufacture small volume APIs for the US market.

In a filing with the Bombay Stock Exchange (BSE) today, the company announced the purchase of Psgah Labs Inc. by two of its subsidiaries: Ipca Pharmaceutical Inc, USA and Onyx Scientific Ltd.

Pisgah is a US-based contract manufacturing organization (CMO) and active pharmaceutical ingredients (APls) and intermediate developer.

The object of the acquisition is “to establish Company's foothold in the US market in the field of contract research / small volume APls and intermediates manufacturing,” per Ipca's filing.

For the financial year ending April 2017, Pisgah had a total income of $2.89m and an EBITDA of $1.14m.

According to the company, Onyx and Pisgah's services “dovetail effectively” with Ipca’s capabilities in supporting Phase II to commercial scale programs.

Ipca purchased Onyx in 2011 – a move which marked the company’s first foray outside of India.

Moving forward, Pisgah will continue to operate out of its North Carolina manufacturing facility under its same name.