According to the terms, Cambrex will pay $425m (€363m) for the contract development and manufacturing organisation (CDMO), including two manufacturing facilities in New Jersey, US, and Quebec, Canada. The firm’s 450 employees will also transfer to Cambrex.
According to Cambrex, “Halo’s core competencies include developing and manufacturing highly complex and difficult to produce formulations, products for paediatric indications and controlled substances.”
“This acquisition opens a completely new segment of the market for Cambrex in finished dose development and manufacturing,” said Cambrex CEO Steve Klosk in a statement.
“Halo’s expertise in oral solids, liquids, creams and ointments fits well with our small molecule API [active pharmaceutical ingredient] business and brings a substantial new customer base and pipeline of small molecules products,” he added.
While the move to combine capabilities is in its early stages, Klosk told investors that business development staff from Halo and Cambrex will soon be able to sell all capabilities and services of the combined companies.
For example, Cambrex will be able to offer both API and formulation services, he said during a conference call today: “We believe we will have customers who will value that.”
In addition, Klosk revealed that prior to entering discussions with Cambrex, Halo had been contemplating a move into different dosage forms: “Sterile fill/finish would be an example of this,” he added.
“Cambrex has more than enough capital to expand that business,” he added.
The deal, which is due to close at the end of Q3 this year, is the latest in a series of investments designed to boost Cambrex’s capabilities. In October 2017, the firm announced plans to start making high potency APIs at its facility in Milan, Italy, and the following month, completed the expansion of its small API capacity in Iowa, US.
Earlier this year, Cambrex said it would invest $5m in a laboratory expansion in Karlskoga, Sweden, and construct a research and development laboratory in Italy.