AAIPharma, Cambridge Major Labs To Merge

Cambridge Major Laboratories and AAIPharma Services announced their intent to merge. Financial terms of the merger were not disclosed. The move is intended to build a global supplier of integrated CMC services.

Patrick Walsh, chief executive officer of AAIPharma, will hold that role in the merged company. Brian Scanlan, chief executive officer and president of CML, will be president of Business Operations at the combined company, handling sales, marketing and other customer-facing roles.

The new company’s name has not been revealed. Mr. Walsh told Contract Pharma that no layoffs are planned, and that the merged firm plans to add staff in the formulation, analytical, and chemistry areas, and possibly in downstream manufacturing.

“The basis for the merger was to start with the right building blocks — a merger of two equals: two highly respected, market-leading firms with proven expertise in API development, analytical chemistry, and finished dosage forms,” said Mr. Scanlan. “We believe that we have a strong foundation to deliver superior customer-oriented solutions to expedite drug development and commercialization.”

”The merger of these two organizations will offer customers a reliable partner that can address the majority of their pharma development and manufacturing requirements,” said Mr. Walsh. “The combined organization will provide comprehensive services that include process chemistry, solid state chemistry, API manufacturing, formulation development, analytical development and testing services, clinical and commercial finished dosage form manufacturing (oral solid and sterile), packaging, and stability services, all supported by robust project management.”

Mr. Scanlan added, “The combined CML and AAIPharma will provide a superior customer experience defined by high-quality facilities, best-in-class capabilities, scientific expertise, geographic proximity, and effective support services that maximize scientific and project interaction at each phase.”

Mr. Walsh told Contract Pharma, “This move allows us to move up the drug development food chain. CML manufactures more than 125 APIs, and those are all candidates for analytical services, clinical manufacturing and development, and more. At the same time, AAIPharma allows CML to take advantage of our formulation and chemistry expertise.”

AAIPharma is owned by Water Street Partners, and CML was bought by American Capital Ltd. in December 2012. The merger is expected to close by the end of October 2013, subject to Hart-Scott-Rodino approval and other closing conditions.

Look for our Newsmakers Q&A with Mr. Walsh in the November/December issue of Contract Pharma!