French pharmaceutical manufacturer Synerlab has acquired Spanish contract development and manufacturing organization (CDMO) Alcala Farma. The group specializes in the development of proprietary formulations, which represent nearly 40% of its total €25m sales.

Alcala Farma’s current portfolio of pharmaceutical drugs come in multiple dosage forms, including injectable, oral and topical products. Manufacturing is covered by two production sites in Spain, with one specializing in soft gelatin capsules and the other covering more than 250 formulations and 3,500 references.

For Synerlab, which has sales of nearly €110m and over 700 employees across five production sites in France, Alcala Farma represents a first step in the group’s European development. Alcala Farma will give Synerlab access to the growing Spanish CDMO market.

With growth of approximately 8% per year on average, Synerlab benefits from the trend of pharmaceutical groups increasingly outsourcing their manufacturing activities and repatriating production to Europe for better quality control, as well as the growing demand for generics. The acquisition of Alcala Farma, financed by Synerlab’s shareholders, 21 Partners and Ardian, will see the group increase its revenue base by over 20%, with the proportion of sales outside of France rising from 30% to 45%.

“The acquisition of Alcala Farma positions Synerlab as a leading European specialist pharmaceutical manufacturer,” said Pierre Banzet, chief executive officer, Synerlab. “In addition to Alcala Farma’s complementary product portfolio and development capabilities, commercial synergies, relationships and sharing of resources will allow us to offer clients a more comprehensive service.”