Cambrex enters growing finished dosage form market

Cambrex has agreed to acquire Halo Pharma, a leading dosage form CDMO, majority owned by funds managed by the private investment firm SK Capital Partners, for approximately $425 million. With the acquisition of Halo, Cambrex will enter the large and growing finished dosage form CDMO market. Halo provides drug product development and commercial manufacturing services, specializing in oral solids, liquids, creams, sterile and non-sterile ointments. Halo’s core competencies include developing and manufacturing highly complex and difficult to produce formulations, products for pediatric indications and controlled substances. Cambrex’s acquisition of Halo creates a leading small molecule CDMO with a broad range of capabilities and a robust customer base.

"We are excited to announce our acquisition of Halo, which underscores our commitment to providing comprehensive, best-in-class services to address the needs of our global pharmaceutical, biotech and generic customers," commented Steve Klosk, President and CEO of Cambrex. "This acquisition opens a completely new segment of the market for Cambrex in finished dose development and manufacturing. Halo’s expertise in oral solids, liquids, creams and ointments fits well with our small molecule API business and brings a substantial new customer base and pipeline of small molecule products. We believe the combination of Cambrex and Halo will attract new customers to the combined company and allow us to more efficiently broaden our pipeline of products, while continuing to capitalize on the rapidly-growing pharmaceutical services market."

"This transaction affirms the reputation we have developed as a trusted CDMO with a strong track record of regulatory compliance and quality, technical expertise and growth," commented Lee Karras, CEO of Halo Pharma. "We are very excited to be joining the Cambrex team and look forward to growing the combined company together and providing our customers the expansion of services this creates."

Commenting on the agreement, Aaron Davenport, Chairman of Halo Pharma and Managing Director of SK Capital Partners, said: "We are proud of what has been accomplished by Halo under the leadership of CEO Lee Karras and CFO Barry Lederman and its entire management team. Halo is well positioned to continue to grow and flourish under Cambrex’s ownership, and we are confident they are the right owner to move the business into the next stage of its development. We wish Cambrex and the employees of Halo every success, and are excited to follow their accomplishments in the years to come."

Halo operates two state-of-the-art, GMP-compliant facilities located in Whippany, NJ, USA and Montreal, Québec, Canada, comprising 430,000 sq ft of plant space. Both sites have a strong reputation for quality and excellent regulatory track records with regulatory approvals from the FDA, EMEA, DEA and Health Canada. Halo is currently engaged in more than 100 product development projects for over 70 customers, and is expected to generate over $100 million in annual revenue in 2018. Halo’s 450-person workforce will join Cambrex’s 1,200 employees across the US and Europe.

Completion of the transaction is is expected to occur during the third quarter of 2018.