When Columbia announced its $25m (€18.7m) acquisition of UK-based drug formulations specialist Molecular Profiles last week it said the move would diversify its revenue stream and give it greater control of the production of its progesterone gel product, Crinone.
At the time CEO Frank Condella said: “We are broadening our technical expertise with a management team that is well-recognized in the field of pharmaceutical development and analytical services.
“By transitioning Crinone quality management and technical support to Molecular Profiles, within close proximity of our Crinone manufacturing sites and supply chain management in Europe, we anticipate significant improvements in efficiencies and greater responsiveness to Merck Serono, our largest customer for Crinone.”
Late yesterday Columbia announced that Molecular Profiles’ CEO Nikin Patel has joined its board and that the UK firm’s co-founder, Martyn Davies, will serve as an advisor.
Columbia has been working to broaden its revenue stream beyond Crinone – which it makes for Actavis and Merck Serono - since 2012 when the US Food and Drug Administration (FDA) said it would not approve it as a preventative treatment for preterm birth.
The disappointment prompted Columbia to call on financial advice from Cowen and Co, layoff 42% of its workforce to cut costs and begin looking at ways to diversify.
Molecular Profiles’ assets include a new manufacturing facility – comprising six GMP production suites, development labs and a packing area - that was approved by the UK Medicines and Healthcare products Regulatory Agency (MHRA) in July.
At the time Patel told Outsourcing-pharma.com the new facility would expand its capabilities in analytical services.
“With 15-6 years of experience in high end pharmaceutical analysis,” he said, “Molecular Profiles has a breadth of offerings not commonly found in CMOs.”