Pharmaceuticals Acquisitions in 2020

Tübingen-based SHS Gesellschaft für Beteiligungsmanagement mbH is making a minority growth investment from its SHS V fund in Swiss-German specialty drug company Develco Pharma. Develco, headquartered in Pratteln, Switzerland with ~125 employees and production in Schopfheim, Germany, develops and manufactures orally administered prolonged-release medicines and will use the investment to broaden its pipeline and expand capabilities.

Pace Analytical Life Sciences, a subsidiary of Pace Analytical Services, acquired Bio-Concept Laboratories, a Salem, New Hampshire-based pharmaceutical CDMO specializing in sterile aqueous formulation development and fill–finish manufacturing. The deal expands Pace’s sterile materials and ophthalmic manufacturing capabilities to better support clinical trial and drug development programs and strengthens its New England CDMO footprint.

Provepharm Life Solutions has acquired Apollo Pharmaceuticals USA Inc., a Florida-based commercial specialist in sterile injectable products for hospitals. The acquisition strengthens Provepharm's U.S. commercial platform and adds Apollo's four registered products, enabling faster U.S. growth and streamlined hospital-focused sales operations.

Neurotrope, Inc. and Metuchen Pharmaceuticals, L.L.C. completed an all-stock merger to form Petros Pharmaceuticals, Inc., a newly traded public company focused on men's health with primary commercial asset Stendra (avanafil). Neurotrope shareholders own approximately 49% and Metuchen shareholders own approximately 51% of the combined company; Petros will pursue commercialization strategies including a potential non-prescription conversion of Stendra and will be led by Fady Boctor as President and CCO.

Charterhouse Capital Partners–backed Laboratoires SERB has agreed to acquire BTG Specialty Pharmaceuticals from Boston Scientific. The deal expands SERB’s portfolio of emergency and critical‑care medicines (including CroFab, DigiFab and Voraxaze), strengthening its manufacturing capabilities and global commercial reach.

Covis Group S.à r.l. completed a cash tender offer and merger to acquire AMAG Pharmaceuticals, Inc. for $13.75 per share, taking AMAG private and delisting its NASDAQ shares. The acquisition adds AMAG’s marketed products (including Feraheme and Makena) and development-stage assets in women’s health and hematology/oncology to Covis’ specialty pharma portfolio, supported by financing from Capital One and investment funds managed by HPS Investment Partners.

Akers Biosciences (NASDAQ: AKER) and MyMD Pharmaceuticals have entered into a definitive merger agreement that will combine the two companies into a single Nasdaq-listed company to be renamed MyMD Pharmaceuticals, Inc. The transaction, expected to close in H1 2021, gives current MyMD shareholders approximately 80% of the combined company and is intended to provide MyMD access to public capital and Akers' resources to accelerate development and commercialization of MyMD's immunotherapy pipeline.

Pfizer’s Hospital Business acquired Arixa Pharmaceuticals to advance development of Arixa’s lead oral prodrug ARX-1796, a potential oral beta-lactamase inhibitor + antibiotic combination. Financial terms were not disclosed; Arixa was a virtual, asset-light company based in Palo Alto and was advised by Four Oaks Partners on the transaction.

Sterling Pharma Solutions, a portfolio company of GHO Capital Partners, has acquired Alcami’s Germantown, Wisconsin API development and manufacturing facility. The facility expands Sterling’s US footprint and adds cGMP capacity for complex and hazardous API projects, including plant-scale hydrogenation and cryogenic reactions.

Foundation Consumer Brands (backed by Juggernaut Capital Partners and Kelso & Company) acquired a portfolio of seven over-the-counter (OTC) brands from GlaxoSmithKline Consumer Healthcare. The transaction transfers brands including Breathe Right and Children's Dimetapp into a new PE-backed OTC platform (Foundation Consumer Brands), which will leverage existing management and distribution relationships with Foundation Consumer Healthcare and Ceuta Healthcare Group to drive growth.

Groupe Lehning (Laboratoires Lehning) has acquired French dietary-supplements maker Laboratoire Lescuyer from private equity firm Abenex; Abenex and co-investors Bpifrance and Ouest Croissance sold their entire stakes. Isabelle de Carmantrand and the Lescuyer family reinvested alongside the buyer; the deal is intended to combine complementary therapeutic areas and distribution channels to accelerate brand growth.

Thomas H. Lee Partners and Frazier Healthcare Partners have acquired Adare Pharmaceuticals (to be rebranded Adare Pharma Solutions) from TPG Capital. The deal includes Adare’s CDMO, pharmaceutical technology and microbiome businesses while TPG retained rights to an EoE product spun into a separate entity; terms were not disclosed.

Funds advised by Permira have agreed to acquire the controlling stake in Neuraxpharm, a leading European specialty pharmaceuticals company focused on central nervous system (CNS) disorders, from funds advised by Apax Partners. Financial terms were not disclosed; Neuraxpharm had annual revenues in excess of €460 million and around 850 employees under Apax's ownership.

Santen Pharmaceutical Co., Ltd., through its U.S. subsidiary Santen Holdings U.S. Inc., acquired all outstanding shares of Eyevance Pharmaceuticals Holdings Inc. for $225 million in cash. The deal brings Eyevance’s topical ophthalmic product portfolio and U.S. commercial team into Santen’s global ophthalmology business; two development-stage assets (VISOVANQ and NEXAGON) were carved out and excluded from the purchase.

Nestlé Health Science (NHSc), via a Nestlé S.A. acquisition subsidiary (Société des Produits Nestlé S.A.), agreed to acquire Aimmune Therapeutics for USD34.50 per share in cash, valuing the company at approximately USD2.6 billion. NHSc already owned ~25.6% of Aimmune; the tender offer is expected to close in Q4 2020 and will expand Nestlé's portfolio with Aimmune's FDA-approved peanut allergy therapy Palforzia.

Pace Analytical Services, LLC acquired Emerson Resources, Inc., a CDMO specializing in solid oral dosage development and cGMP clinical trial material manufacturing. The acquisition expands Pace Life Sciences' capabilities to include clinical trial material production and transitions Emerson's Norristown, Pennsylvania lab into the Pace Analytical network while Emerson principals exit the business.

LGM Pharma has acquired the formulation development and drug product contract manufacturing business of Nexgen Pharma, expanding LGM's CDMO capabilities and U.S.-based manufacturing footprint. Financial support for the transaction was provided by private equity firm New Harbor Capital; Nexgen Pharma sold its pharmaceutical CDMO unit to allow the company to focus on other healthcare segments.

Croda International Plc has agreed to acquire Avanti Polar Lipids, a US-based developer and manufacturer of high-purity lipids and lipid-based drug delivery solutions. The deal brings Avanti's research product portfolio and cGMP pharmaceutical services into Croda's Life Sciences sector to expand capabilities in drug delivery, vaccine adjuvants and cGMP manufacturing for biotechnology and pharmaceutical customers worldwide.

Charlotte's Web Holdings, Inc. completed a plan of arrangement to acquire all outstanding shares of Abacus Health Products, bringing Abacus brands (CBD MEDIC, Harmony Hemp and CBD CLINIC) into Charlotte's Web and expanding the combined company's distribution to more than 21,000 retail doors. The transaction was an all-stock exchange (0.85 Charlotte's Web share per Abacus share) that creates cross-selling opportunities between Charlotte's Web's ingestible CBD products and Abacus's OTC topical medications and professional practitioner lines.

Advantage Capital invested $2 million in Watkinsville-based GAXtracts to provide working capital and equipment financing under Georgia’s GARJA program. The growth capital will support facility expansion, the purchase of new equipment and is expected to create 30 new local jobs as GAXtracts scales production of hemp-derived active pharmaceutical ingredients and CBD products.

Belgium-based biopharma UCB has acquired Summit, New Jersey-based Engage Therapeutics for an upfront cash payment of US$125 million plus up to US$145 million in milestone payments, gaining worldwide rights to Staccato Alprazolam. The acquisition adds a late-stage, drug-device rescue therapy candidate for epilepsy to UCB's neurology portfolio and includes updated license and supply agreements with Alexza Pharmaceuticals.

Ampersand Capital Partners has made a majority investment in Tjoapack Netherlands B.V., a global contract packaging organisation serving the pharmaceutical industry. The investment will fund expansion of Tjoapack's automated packaging capabilities (including injectable products and pre-filled syringes); Dexter Tjoa has been appointed CEO while founder Eric Tjoa remains on the board.

Parabellum Investments, an international private equity firm, has acquired Brussels-based pharma serialization specialist Advanco. Parabellum plans to scale Advanco's ARC serialization software internationally (initial focus: US, Russia and Europe) and pursue further acquisitions to grow the business in the pharmaceuticals market.

Curium has acquired Zevacor Molecular, a producer of Strontium-82 used to make Rubidium-82 generators for cardiac PET imaging. The acquisition expands Curium's PET product capabilities and brings Zevacor's manufacturing infrastructure and employees into the Curium organization.

Altasciences, a mid-size contract research organization based in Laval, Quebec, has acquired Alliance Contract Pharma to add small-molecule contract manufacturing and analytical services, including commercial manufacturing, GMP warehouse storage, and clinical supply distribution. The acquisition expands Altasciences' integrated early‑phase drug development offering by adding manufacturing and analytical capabilities to its preclinical, clinical, and bioanalytical services.

Revive Therapeutics Ltd. entered into a letter of intent to acquire all issued and outstanding securities of Psilocin Pharma Corp. for an aggregate purchase price of $2.75 million to be satisfied by issuing 55 million common shares of Revive (deemed $0.05/share). Revive deposited 10 million shares ($500,000) into escrow as a deposit; the closing is subject to due diligence and execution of a definitive share exchange agreement.

Funds managed by affiliates of Apollo Global Management have agreed to acquire Covis Pharma BV from an affiliate of Cerberus Capital Management. Terms were not disclosed; the transaction is expected to close by the end of Q1 2020 and aims to accelerate Covis's global expansion and build out its respiratory and specialty pharma franchises.

BioPharmX Corporation (NYSE American: BPMX) entered into a definitive merger agreement with Timber Pharmaceuticals LLC whereby a BioPharmX subsidiary will merge into Timber, leaving Timber as a wholly‑owned subsidiary of BioPharmX. The transaction will bring at least $20 million of financing to the combined company, after which BioPharmX will change its name to Timber Pharmaceuticals and Timber’s management will become the combined company's leadership.

Alcami Corporation has acquired TriPharm Services, a new sterile fill‑finish manufacturing center near Research Triangle Park, North Carolina. Funds affiliated with Alcami majority owner Madison Dearborn Partners made an additional equity investment to support Alcami's growth plan, while Ampersand Capital Partners rolled a portion of its TriPharm ownership into Alcami.

GHO Capital Partners LLP has acquired Ardena, a Belgium‑headquartered contract development and manufacturing organisation (CDMO) focused on early‑phase drug development, from Mentha Capital and existing management. GHO will partner with Ardena's management to accelerate international growth, broaden the company’s service offering and build a fully integrated early‑stage CDMO platform through organic and inorganic expansion.

Copenhagen-headquartered Galecto Inc. (a Novo Seeds portfolio company) has merged with San Diego-based PharmAkea, Inc. The combined clinical-stage company will retain the Galecto name, be incorporated in the United States, and combine complementary pipelines in fibrosis and oncology to accelerate development of small-molecule and galectin-targeting therapeutics.

Rubicon Research Private Limited has acquired Impopharma Canada Limited and merged it with Rubicon Research Canada Limited to establish a nasal and pulmonary development Center of Excellence in Concord, Ontario. The 13,000 sq. ft. site — previously inspected by the U.S. FDA and Health Canada — expands Rubicon's global development network and formulation/analytical capabilities; Rubicon is a portfolio company of growth investor General Atlantic.