Packaging firm PCI buys Welsh CDMO for $215m
The 30 year-old Welsh company is privately owned and employs 300 at its headquarters in Tredegar, Wales (UK). It has regional offices in Pennsylvania and Tokyo and last year opened a Welsh tablet manufacturing facility for highly potent compounds. Earlier in 2014 Penn Pharma expanded its large-scale commercial manufacturing and packaging capabilities.
PCI’s CEO Bill Mitchell told Outsourcing-Pharma.com he plans to have the two firms continue to operate as distinct companies.
PCI said the acquisition of Penn Pharma’s drug development, manufacturing, and packaging services will complement its own growth in clinical trial supply services, after its own recent expansions in global operations in North America and Europe. Investments include cold chain infrastructure for storage and logistics, increased support for refrigerated packaging operations and the purchase in April 2013 of AndersonBrecon, a packaging subsidiary of AmerisourceBergen, for $308m (€229m).
PCI plans to open a 97,000 sq ft storage and distribution facility for investigational products in the US in September this year.
Mitchell told us Penn Pharma is a recognized leader in drug development and manufacturing, especially potent compounds. “They also have a strong presence in clinical trials services such as drug manufacturing, of course, but also packaging and distribution of investigational products.
“All of these specializations complement investments we have made in PCI’s core business over the past few years […]Our customers are looking for strategic suppliers who can address a broad range of needs for their business.”
PCI is mainly owned by venture capital firm Frazier Healthcare, with partner investors QIC Global Private Equity, Greenspring Associates and Thomas, McNerney & Partners.
This transaction provides a final exit for private equity firm LDC which invested £33m in Penn Pharma in 2007.
PCI’s President told this publication Penn Pharma’s executive team, led by CEO Richard Yarwood, would retain positions after the acquisition’s completion.