Plans to boost heparin API position with $337 million purchase
Hepalink Pharmaceutical Co., Ltd. will acquire Scientific Protein Laboratories, LLC. (SPL), a global API manufacturer, for $337.5 million in cash, plus contingent payments. According to a Hepalink statement, the acquisition will enable the company to expand its presence in the heparin supply market, while providing it with greater product development and growth opportunities in new markets for its line of APIs, including pancreatic enzyme and heparin products.
Hepalink plans to keep SPL’s management in place, along with its 204 employees in the U.S. SPL’s main facility is in Waunakee, WI. Hepalink is based in Shenzhen, China and has been approved to participate in the U.S. Pharmacopeial Convention’s Pharmaceutical Ingredient Verification Program, which includes rigorous testing, verification and certification of products intended for export to the U.S.
“This represents an exciting opportunity for both companies and all of their employees in an increasingly global industry,” said Li Li, chairman and chief executive officer of Hepalink. “After the acquisition, Hepalink will be able to further enhance the stability and safety of the supply of the heparin product raw materials, strengthen Hepalink’s globally leading advantages in technology, processing techniques, quality and safety standards, and form a global heparin API manufacturing, R&D and distribution network for Hepalink. The transaction will open new markets for API products and allow for greater investment in R&D, new products and processes. Operating at the high level of U.S. and international safety standards, the combined company will continue its absolute commitment to global best practices in product safety and quality as a trusted supplier of ingredients for critical medicines.”
“We are excited about this transaction and what it means for Scientific Protein Laboratories,” said Robert Mills, SPL’s chief executive officer. “This will expand our ability to develop and grow both our domestic and international businesses and to continue to conduct cutting-edge research on new products. We do not anticipate any changes in how we currently do business. We will become part of a very successful company that shares our commitment to safety and quality.”
The parties will file a notice of the transaction with the Committee on Foreign Investment in the U.S. (CFIUS), but they do not expect that any aspects of this transaction will impact U.S. national security. The transaction is currently expected to close during 1H14.