Via CA Clover Intermediate II Investments, private equity firm the Carlyle Group is to invest about $940 million in fresh equity capital for a 20% stake in Piramal Pharma, the healthcare subsidiary of Indian conglomerate Piramal Enterprises (PEL). This values the business at $2,775 million with an upside component of up to $360 million depending on the company’s performance this financial year.
Small molecule CDMO Cambrex is to spend $3.6 million to increase flexible drug substance manufacturing capacity by 6 m3 (25%) at Karlskoga, Sweden, in response to growing demand for commercial-scale API manufacturing. Engineering work has already commenced and should be completed by November.
Nicolas Biz, CDMO chief project officer, shows how Seqens rapidly developed production of a key material in the fight against Covid-19
Pending the availability of a vaccine, which will necessarily take time, the race against the clock is under way to identify and develop an anti-viral molecule effective against Covid-19. Research is taking place at an unprecedented speed, with more than 1,900 clinical trials listed worldwide since the start of the pandemic. Of these, 912 are in the process of patient testing.
Mark Quick, EVP of corporate development at Recipharm, discusses the M&A trend within the CDMO industry
M&A activity within the pharmaceutical industry remains at a high. According to Ernst & Young (EY), M&A strategies have increased by around 12% year-on-year since 2012.1 CDMOs are some of the major players in these high-value deals, seeing it as a valuable strategy that enables to capitalise on another company’s strengths and thus better position their organisations to meet market demands and realise a more competitive edge.
Several of the world’s major pharmaceutical CDMOS have recently made announcements relating to their participation in projects to develop treatment for the Covid-19 virus. Many involve chloroquines, in anticipation of their large-scale use.
Bachem, the world’s largest producer of pharmaceutical peptides and ologonucleotides, has signed an exclusive licensing agreement with Japanese firm Jitsubo related to the latter’s liquid-phase peptide technology. Molecular Hiving. Financial terms were not disclosed. The two firms have already worked together on APIs and cosmetic peptides.
Roger-Marc Nicoud, CEO of Ypso-Facto, looks at the challenges and opportunities for CDMOs in the current crisis*
The current crisis has highlighted the dependence of European and, indeed, North American countries on delocalised production. This is the case for many goods, including APIs and drugs in general.