AMRI has signed a definitive agreement to acquire Oso Biopharmaceuticals Manufacturing, LLC for $110 million in cash. OsoBio is a contract manufacturer of highly complex injectable drug products, including sterile liquid, suspension and lyophilized formulations. The acquisition, subject to customary closing conditions, is expected to close in 3Q14.
Based in Albuquerque, NM, OsoBio's core capabilities include liquid fill and lyophilized products, highly potent compounds, cytotoxics, proteins and peptides, monoclonal antibodies, vaccines, liposomal suspensions and controlled substances. OsoBio also has a development pipeline with multiple late-stage products. OsoBio's forecasted full year 2014 revenue is estimated to be between $58 and $60 million.
OsoBio is expected to operate independently within AMRI's Drug Product business unit. Milton Boyer, OsoBio's president and chief executive officer will lead the OsoBio team, reporting to Steven Hagen, Ph.D., AMRI's senior vice president of manufacturing and pharmaceuticals.
"The acquisition of OsoBio is highly complementary to our finished dose manufacturing business, and is consistent with our strategy to be the preeminent supplier of custom and complex drug development services and products to the pharmaceutical industry," said William S. Marth, AMRI's president and chief executive officer. "OsoBio adds significantly to our sterile manufacturing capabilities, extending our industry-leading position in early stage contract manufacturing to now include OsoBio's preeminent large-scale commercial production. In addition, we expect to realize savings in capital costs associated with the previously planned facility expansion."
"We are very excited about the synergies that our Albuquerque operations will bring to AMRI as part of their organization," said Mr. Boyer, OsoBio's president and chief executive officer. "The addition of AMRI's experience and capabilities in early phase development greatly increases the value proposition for our customers, providing a single source to address all sterile fill/finish needs from phase 1 development complete to commercial supply."