Recipharm to Acquire Consort Medical for $650 Million, Creating a Top-Five Global CDMO

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on November 18, 2019, pharmaceutical services company Recipharm announced the acquisition of UK-based drug delivery device supplier Consort Medical for approximately $650 million. The transaction is expected to be completed in the first quarter of 2020.

Recipharm Announces Lazard as Financial Advisor for the Transaction.

Upon completion of the acquisition, Recipharm will become a leading inhalation company and one of the top five global Contract Development and Manufacturing Organizations (CDMOs). The combination of Consort Medical’s innovative drug delivery technologies with Recipharm’s development capabilities in inhalation and sterile injectable dosage forms enables the provision of differentiated products and services to customers within the same value chain, making the merger highly complementary. Furthermore, this acquisition will add significant intellectual property (IP) and proprietary know-how to Recipharm’s portfolio, thereby increasing its share of the value chain.

Consort is a publicly listed company incorporated in England, with its shares admitted to trading on the Premium Segment of the London Stock Exchange. As a leading global and integrated provider of drug delivery devices, Consort is at the forefront of the industry, dedicated to delivering innovative solutions for patients, clinicians, and customers through novel therapies.

Bespak, a division of Consort Medical, is dedicated to providing drug delivery devices to pharmaceutical partners, including products for respiratory, nasal, injectable, and ophthalmic applications. Bespak also engages in the manufacture of therapeutic diagnostic devices. The Aesica division provides development and manufacturing services for finished pharmaceuticals and active pharmaceutical ingredients (APIs) to pharmaceutical partners.

The merged company will leverage Bespak’s core technologies to provide finished dosage forms and deliver more integrated solutions to customers. Thomas Eldered, CEO of Recipharm, stated in a press release: “The Aesica business will further expand our capabilities in the manufacturing of active pharmaceutical ingredients (APIs) and finished pharmaceutical products, while also providing access to new customer segments.”

Jonathan Glenn, CEO of Consort Medical, stated: “Consort has remained focused on expanding its business into new markets and geographies, as well as developing our portfolio of combination drug-device products. Recipharm’s capabilities and market leadership in pharmaceutical manufacturing will strengthen our Bespak and Aesica businesses. We believe that our customers will place greater value on the combined company’s products and scale.”

(Compiled by: Xiong Hui)