11.20.19
Swedish CDMO Recipharm is acquiring Consort Medical, the parent of drug delivery and device maker Bespak and the CDMO Aesica, for roughly $650 million. The deal will make Recipharm a top five global CDMO, able to offer integrated device development and supply combined with commercial scale finished dose manufacturing.
This latest acquisition is set amid continued consolidation in the fragmented CDMO industry, as pharmaceutical companies seek to reduce their fixed costs by rationalizing supply chains and focusing on core R&D and sales capabilities. Consequently, they are turning to trusted partners with the necessary scale and scope of technologies to support them through the drug development process and the subsequent commercial manufacturing and supply.
These sector dynamics, and Consort’s strength in pharmaceutical device development and manufacturing, made it an attractive target. Consort’s delivery technologies are complementary to Recipharm’s capabilities in the development and commercial supply of both inhaled and sterile injectable finished dose forms.
“I am excited at the prospect of combining Recipharm with Consort, which is extremely complementary,” said Thomas Eldered, chief executive officer, Recipharm. “In our view, Bespak is already acknowledged as a leading drug device developer and manufacturer and is a perfect fit for Recipharm’s broader pharmaceutical capabilities. The enlarged group will be able to provide finished dose forms in Bespak’s key technologies and provide customers with a far more integrated approach. The Aesica business will further expand our capabilities and capacities in both API and finished dose manufacturing while providing access to a new customer base.”
Jonathan Glenn, chief executive officer, Consort, said, “Consort’s strategy has been to focus on expanding its businesses into new markets and geographic territories, and on developing our combined drug/device offering. Recipharm’s capabilities and footprint in drug manufacturing will enhance both our Bespak and Aesica businesses. We believe that customers of both businesses will value the offering and enhanced scale of the combined business.”
This latest acquisition is set amid continued consolidation in the fragmented CDMO industry, as pharmaceutical companies seek to reduce their fixed costs by rationalizing supply chains and focusing on core R&D and sales capabilities. Consequently, they are turning to trusted partners with the necessary scale and scope of technologies to support them through the drug development process and the subsequent commercial manufacturing and supply.
These sector dynamics, and Consort’s strength in pharmaceutical device development and manufacturing, made it an attractive target. Consort’s delivery technologies are complementary to Recipharm’s capabilities in the development and commercial supply of both inhaled and sterile injectable finished dose forms.
“I am excited at the prospect of combining Recipharm with Consort, which is extremely complementary,” said Thomas Eldered, chief executive officer, Recipharm. “In our view, Bespak is already acknowledged as a leading drug device developer and manufacturer and is a perfect fit for Recipharm’s broader pharmaceutical capabilities. The enlarged group will be able to provide finished dose forms in Bespak’s key technologies and provide customers with a far more integrated approach. The Aesica business will further expand our capabilities and capacities in both API and finished dose manufacturing while providing access to a new customer base.”
Jonathan Glenn, chief executive officer, Consort, said, “Consort’s strategy has been to focus on expanding its businesses into new markets and geographic territories, and on developing our combined drug/device offering. Recipharm’s capabilities and footprint in drug manufacturing will enhance both our Bespak and Aesica businesses. We believe that customers of both businesses will value the offering and enhanced scale of the combined business.”
