PharmSource – M&A in the Contract Manufacturing Industry: Implications and Outlook – 2018 Edition

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This report is the 2nd edition of our analysis of Mergers and Acquisitions in the contract manufacturing industry. PharmSource is the most definitive, trustworthy source of strategic insight on this topic in the bio/pharmaceutical realm.

Scope

This report analyzes merger and acquisition (M&A) activity in the pharmaceutical contract manufacturing industry during the period 2015–2017. The services considered in this report are contract manufacturing of active pharmaceutical ingredients (APIs) and finished dose products, associated analytical services, and packaging. Contract research providers were excluded.

Reasons to Buy

Who should buy this report?

This 52-page report gives important, expert insight you won’t find in any other source. 28 tables and figures throughout the report illustrate major points and trends. This report is required reading for:

• CMOs: market trends, strategic planning, competitive intelligence, performance benchmarking

• Bio/Pharma: supplier performance benchmarking, market trends, competitive intelligence

• Private equity and Stock analysts: target identification and analysis, portfolio company performance benchmarking

3SBio
ABC Laboratories
Absorption Systems
Abzena
Acacia Lifesciences
Accucaps
Accuratus Lab Services
Advanced BioScience Laboratories
Advantar Laboratories
Aeras
Agere Pharmaceuticals
AGIC Capital
Ajinomoto
Akorn
Albany Molecular Research Inc. (AMRI)
Alcala Farma
Alcon
Alkermes
Alliance Protein Laboratories
Almac Group
Alphora Research
Altasciences
Amatsigroup
AmatsiQ
American Peptide Company
AMPAC Fine Chemicals
ams Laboratories
Analytical Biochemical Laboratory
Analytical Lab Group
Antibioticos de Leon
Apicore US
Aptuit
Arcadia SGR
Arch Pharmalabs
Arcinova
Ardena Holding
Ardian
Argenta Limited
Arlington Capital Partners
Array BioPharma
Asahi Glass Company
Ash Stevens
Astellas Pharma
AstraZeneca
Audax Private Equity
Aurobindo Pharma
Avara Pharmaceutical Services
Avid Bioservices
Avista Pharma Solutions
Axcellerate Pharma
Axolabs
B & C Group
Bachem
BASF
Bayer
BCM
Bemis Company
Bioclin Research Laboratories
Biocon
BioDuro
Biogaran
Biogen
BIOMEVA
Blanver Farmoquimica
Blue Stream Laboratories
Boehringer Ingelheim
Bora Pharmaceuticals
Brammer Bio
Bristol-Myers Squibb
Bushu Pharmaceuticals
Cambrex Corporation
Cambrex High Point
Cancer Genetics Inc.
Capsugel
Captek Softgel International
CapVest Partners
Carbogen Amcis
Catalent Pharma Solutions
Cathay Capital
Cellca
Celonic
Cenexi
Cerbios Pharma
Charles River Laboratories
Clinical Supplies Management (CSM)
Clinigen Group
CMC Biologics
Cobra Biologics
Co-Formulate Limited
Cognate Bioservices
Coldstream Laboratories
Companhia Brasileira de Esterilizacao
Cook Pharmica
CordenPharma International
Covance
Crucell
Crystallics
CU Chemie Uetikon
Cytovance Biologics
Daiichi Sankyo
Delpharm
Disposable-Lab
Doppel Farmaceutici
DPT Laboratories
EAG Laboratories
Edgewater Capital Partners
Emergent BioSolutions
Epic Pharma
Epirus Biopharmaceuticals
EQT
Eurofins Scientific Group
Euticals Group
Evonik Industries
Evotec
Exova
Experchem Laboratories
F. Hoffmann-La Roche
Famar
Fareva Holding
Fertin Pharma
Forest Laboratories
Formex
Fresenius Kabi Product Partnering
Frontida BioPharm
Gadea Grupo Farmaceutico
Galien LPS
GEA Group
GeneDesign
Generis
Generis Farmaceutica
GHO Capital
Gland Pharma
GlaxoSmithKline
Glycotope
Grand River Aseptic Manufacturing
Great Point Partners
Halo Pharmaceutical
Healix Infusion Therapy
Hitachi Chemical Co.
Hospira
Hovione
Humanwell Healthcare
Idis
IDT Biologika
Impax Laboratories (Inactive)
INC Research
Infa Group
inVentiv Health
IQ Pharmatek
IRIX Pharmaceuticals
Irvine Pharmaceutical Services
Isochem
Johnson Matthey
JSR Corporation
J-Star Research
KBI Biopharma
Kemwell Biopharma
Kremers Urban Pharmaceuticals
Kuecept
LGC
Lisapharma
Livia Group
Lonza Group
Lubrizol Corporation
Lyophilization Services of New England
Mariol Industrial
Marken
MaSThercell
Meda
Medicure
Merck / MSD
Merck KGaA
Microbiology & Quality Associates
Microbiology Research Associates
Micro-Macinazione
Millmount Healthcare
Minafin Group
Mitim
Miwana
Molmed
Mylan
Nelson Laboratories
Neuland Laboratories
NextPharma Technologies
Nitto Denko Avecia (Avecia)
Noramco
Novacap Group
Novasep
NuPharm Laboratories
Ology Bioservices (formerly Nanotherapeutics)
Olon
OnTarget Chemistry
Opexa Pharmaceuticals (Inactive)
Orgenesis
PacificGMP
Pamplona Capital Management
Paragon Bioservices
PAREXEL International
Particle Sciences
Partners Group
Patheon
PCI Pharma Services
PCT (Progenitor Cell Therapy)
Permira Advisers
Perrigo Company
Pfizer
PharmaCell
Pharmaceutical Development Services Division
Pharmapak Technologies
Pharmaron
Pharmaron Beijing Co
Pharmatek Laboratories
Pharmaterials
PharmaVize
Pharmorphix (Sigma Aldrich)
Piramal Pharma Solutions
PMC Group
Polpharma
Polypeptide Group
PolyPeptide Laboratories
Porton Fine Chemicals
Powdersize
ProBioGen
Puracap Pharmaceutical
QS Pharma
Quality Compliance Laboratories
Quantum Pharma
Quantum Pharmaceutical
Quotient Clinical
Quotient Sciences
QuVa Pharma
Recipharm
Recro Pharma
Rentschler Biotechnologie
Roche
Ropack Pharma Solutions
Roquette Freres
Rovi (Laboratorios Farmaceúticos Rovi)
R-Tech Ueno
Sandoz
Sanofi
Sartorius
Sartorius Stedim Biotech
Scynexis
Selexis
SeQuent
Serum Institute of India
SGS Life Science Services
Shanghai Fosun Pharmaceutical (Group) Co
Sharp Packaging Services
Shasun Pharmaceuticals
Shenzhen Hepalink Pharmaceutical
Shire
Siegfried Holding
Sinensis Life Sciences
SK Biotek
SK Capital Partners
Smith & Nephew
Sotera Health
Stemedica International
Sterigenics
SteriPack Group
Sterling Pharma Solutions
Strides Shasun (formerly Strides Arcolab)
Sucampo Pharmaceuticals
Suir Pharma
Sun Pharmaceutical Industries
Swander Pace Capital
Swiss Pharma Nigeria
Symbiotec Pharmalab
Synerlab Group
Takeda
Teva Pharmaceutical Industries
TGA Sciences
The Carlyle Group
The Chemistry Research Solution (TCRS)
The Ritedose Corporation
Therapure Biopharma
Thermo Fisher Scientific
TPI Enterprises
Transferra Nanosciences
Transgene
Trilantic Capital Partners
Unimedic Group
Unique Pharmaceuticals
UniTao Pharmaceuticals
United Parcel Service (UPS)
Unither Pharmaceuticals
VGXI
Vibalogics
ViroCyt
Vistin Pharma
vivoPharm Pty
Wacker Chemie
Whitehouse Laboratories
WuXi AppTec
Xceleron
Xcelience
Yegna Manojavam Drugs and Chemicals
Zenotech Laboratories

Table of Contents

1. Executive Summary 1

2 Objectives and Methodology 2

3 Overview of M&A Activity 2015–2017 3

Target Characteristics 4

Acquirer Characteristics 9

4 Segment Close-Ups of M&A Activity 2015–2017 13

Dose Manufacturing 13

API – Biologic 16

API – Small Molecule 17

Analytical Services 19

Formulation and Clinical Supplies Manufacturing 21

Packaging 24

5 Valuations 25

6 Facility Acquisitions 27

7 What It Means 34

8 The Outlook for M&A in the Manufacturing Services Industry 37

9 Notes on Methodology 39

10 Appendix 40

Service Acquisitions 2015–2017 40

Bibliography 47

Primary Research – Key Opinion Leaders Cited in this Report 47

About the Authors 48

Table

Table 1: CMO Services Businesses Acquired as Part of Larger Deals, 2017 6

Table 2: Company Acquisitions by Target Service and Size, 2015–2017 9

Table 3: Company Acquisitions by Target Service and Ownership, 2015–2017 9

Table 4: Company Acquisitions by Target Market Scope and Size, 2015–2017 10

Table 5: Most Active Acquirers, 2015–2017 14

Table 6: Company Acquisitions of Dose Manufacturers, 2015-2017 17

Table 7: Company Acquisitions of API – Biologic Manufacturers, 2015–2017 20

Table 8: Company Acquisitions of API – Small Molecule Manufacturers, 2015–2017 21

Table 9: Company Acquisitions of Analytical Services, 2015–2017 23

Table 10: Company Acquisitions of Formulation Manufacturers, 2015–2017 26

Table 11: Company Acquisitions of Contract Packagers, 2015–2017 27

Table 12: Services Deals with Known Transaction Value and Multiples, 2015–2017 28

Table 13: Facility Acquisitions by CMOs, 2015–2017 34

Table 14: Most Active Acquirers, 2015–2017 37

Table 15: Acquisitions by PE Firms, 2015–2017 38

Table 16: Potential Targets: API – Biologic (Non-Cell and Gene Therapy) Service Providers 40

Table 17: Potential Targets: API – Biologic (Gene and Cell Therapy Only) Service Providers 41

Table 18: Service Acquisitions, 2015–2017 43

Figures

Figure 1: Company Acquisitions by Target Service Offering, 2015–2017 7

Figure 2: Company Acquisitions by Target Revenues, 2015–2017 8

Figure 3: Company Acquisitions by Target Ownership, 2015–2017 8

Figure 4: Acquisition Targets by Sophistication of Capabilities 12

Figure 5: Number of Acquisitions by Acquirer’s Core Business 13

Figure 6: Number of Acquisitions by Acquirer Ownership 14

Figure 7: Number of Acquisitions by Principal Acquirer Motivation 15

Figure 8: Dose Forms Manufactured by Acquired Dose Manufacturers 16

Figure 9: Pharma CMO Facility Acquisitions, 2015–2017 31

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