McClay was also a founder and former chairman of Galen, which has been looking for ways to sell off the unit - called Pharmaceutical Development and Manufacturing Services (PDMS) - and concentrate on becoming a pure-play pharmaceutical products company.
PDMS is involved in drug product formulation, process development, analytical method development and validation, pack design, commercial-scale manufacture, inventory management and distribution. These activities complement those of CSS, which earlier this year opened a €36 million pharmaceutical production facility in Craigavon, Northern Ireland.
CSS was formed in October 2000 following the merger of QuChem and SynGal, both former divisions of Galen. McClay acquired three of the company's divisions (CSS, Clinical Trial Services and Interactive Clinical Technologies) in a management buyout in 2001.
McClay acquired PDMS in a management buy-out deal for £20 million (€28.5 million) in cash, funded by selling 4.28 million shares of his retained stake in Galen, reducing his holding from 8.6 per cent to 6.3 per cent.
As part of the agreement, PDMS will enter into a supply agreement with Galen to continue to manufacture, supply and distribute a number of Galen's products for the UK and Irish market.