Yesterday, we reported that AMRI had purchased Hyaluron Contract Manufacturing (HCM), a privately held CMO focused on sterile filling of parenterals, with prefilled syringe capabilities. We contacted the company for more information about the $27 million deal and where AMRI plans to go from here.
CP: How long was this acquisition in the works?
AMRI: We have been performing market analysis and company specific analysis for over a year, with the Hyaluron acquisition representing the best fit from both a cultural and service offering standpoint.
CP: Are there plans to expand HCM's capacities?
AMRI: Our immediate plans for the acquisition are to integrate administration, operations and quality services to take advantage of cost and operating efficiencies and create a seamless platform for communicating and sharing information. After that, we believe we will be considering the addition of some further ancillary services that will further enhance our overall spectrum of capabilities, and to better support the widening customer demand we anticipate from developing this synergistic product offering.
CP: How soon will HCM be integrated into AMRI's offerings?
AMRI: We anticipate immediate synergies between our two businesses. While Hyaluron will retain its name and operate as a subsidiary of AMRI, our plan is to take advantage of cross-selling opportunities as quickly as they present themselves – and/or as soon as we can make them happen as part of our sales efforts.
CP:So you see a "reverse synergy," in terms of HCM clients potentially employing other AMRI services?
AMRI: Yes, we believe that the unique capabilities of both organizations will quickly assimilate into a larger, fully integrated GMP manufacturing provider of choice for companies desiring to capitalize on seamless technology transfer, increased efficiency and other benefits. The acquisition of Hyaluron expands the spectrum of services for both of our organizations to include the full development spectrum, including the manufacturing of APIs to the manufacture of finished drug product for injectable formulations. This complements the solid (oral) dosage formulation capabilities AMRI has been adding through internal growth.
CP: Did you consider acquiring an overseas prefilled syringe provider, or building your own capabilities, either domestically or overseas?
AMRI: As part of AMRI’s ongoing strategy to add new technologies, products and services that expand its ability to provide integrated services to customers, we have explored an extensive number of options, including the ones you mentioned. After significant due diligence, AMRI decided that the acquisition of Hyaluron was the best choice in terms of immediate synergies, technical expertise, existing facility and equipment, cost, time to build, etc.
CP: In which other formulation/dosage capabilities is AMRI looking to boost its presence?
AMRI: AMRI would like to boost its presence in solid (oral) dosage capabilities in the future. We have some of these capabilities in house which we’ve built internally. But we also continue to seek ways to accelerate this growth, including potential M&A activity.
Gil Y. Roth has been the editor of Contract Pharma since its launch in 1999. He can be reached at email@example.com.