Pharmaceuticals Acquisitions in 2021

Gyrus Capital‑backed Essential Pharma completed a refinancing and executed a series of portfolio transactions in December 2021. Essential Pharma acquired Yorkdale Pharma Limited from Rosemont Pharmaceuticals, divested its 14‑product oral liquid portfolio (Essential Pharma Liquids Limited) to Rosemont, and also acquired worldwide (ex‑US, ex‑India) rights to two products from Novartis to expand its global specialty pharmaceutical portfolio.

Bessemer Investors has made a significant investment in Pet Flavors, LLC, a Melbourne, Florida-based manufacturer of pharmaceutical‑grade flavor bases and palatants for pet pharmaceuticals and nutraceuticals. Founder Mark Pieloch will remain as President while Bessemer intends to establish Pet Flavors as its platform investment in the companion animal health industry; financial terms were not disclosed.

Funds advised by SK Capital Partners acquired a majority shareholding in SEQENS, investing alongside Bpifrance, Nov Santé, Mérieux Equity Partners, Ardian, Eximium and SEQENS' management. The deal includes the integration of Wavelength Pharmaceuticals into SEQENS and the prior divestiture of certain non-core mineral specialties assets; SEQENS emerges as a strengthened pharmaceutical CDMO with ~€1.1bn revenue and ~3,200 employees.

CSL Limited has launched an all-cash tender offer to acquire all publicly held shares of Vifor Pharma Ltd for US$179.25 per share, implying an aggregate equity value of approximately US$11.7 billion. The transaction, unanimously recommended by both boards, expands CSL's presence in nephrology, iron deficiency and cardio-renal therapies and will be funded through a combination of equity placement, new debt and existing cash facilities.

Pfizer Inc. agreed to acquire clinical-stage Arena Pharmaceuticals for $100 per share in an all-cash transaction valued at approximately $6.7 billion, creating a wholly owned subsidiary. The acquisition brings Arena's development-stage portfolio — including etrasimod and cardiovascular assets — into Pfizer's Inflammation & Immunology pipeline to accelerate clinical development and expand therapeutic capabilities.

An affiliate of H.I.G. Capital has made a strategic equity investment in Rising Pharma Holdings and Casper Pharma (together, Rising Pharmaceuticals) to support the company's growth, M&A activity and new product launches. Rising Pharmaceuticals is an asset-light developer and marketer of generic and specialty pharmaceuticals based in New Jersey with a diversified portfolio of over 125 products and a network of 23+ CMO/CDO partners.

Xcovery Holdings, an oncology-focused biopharmaceutical company, has acquired a majority and controlling stake in Meryx, Inc., a clinical-stage immuno-oncology company based in Chapel Hill, North Carolina. The deal aims to accelerate Meryx's clinical and preclinical drug development programs for small-molecule oncology therapies, with strategic support noted from Betta Pharmaceuticals; financial terms were not disclosed.

Adare Pharma Solutions, a PE-backed contract development and manufacturing organization (CDMO), has acquired Frontida BioPharm, a vertically integrated CDMO focused on oral formulations. The deal expands Adare’s capabilities—including high-potency compound handling and packaging services—and increases its manufacturing footprint; Adare is backed by Thomas H. Lee Partners and Frazier Healthcare Partners.

Transatlantic healthcare-focused private equity firm ARCHIMED, through its MED Platform I (MPI) fund, has acquired a majority stake in Madrid-based SUANFARMA, a manufacturer and distributor of active pharmaceutical ingredients (APIs) and nutraceutical ingredients. Ares Management provided debt financing for the transaction; SUANFARMA founder Héctor Ara and members of management rolled a material minority stake into the business and remain significant shareholders.

Pharmacosmos A/S (Pharmacosmos Group) has agreed to acquire all assets of Boston-based clinical-stage AbFero Pharmaceuticals, Inc. under a share purchase agreement for up to $225 million including upfront, milestone, and royalty components. The acquisition adds AbFero’s SP-420 iron chelation program to Pharmacosmos’ iron-metabolism-focused R&D and commercial capabilities to accelerate development and commercialization for transfusional iron overload and related indications.

Welsh, Carson, Anderson & Stowe (WCAS) acquired a majority ownership stake in Leiters, an FDA-registered 503B outsourced pharmaceutical compounding provider. WCAS invested alongside health system investors including Intermountain Ventures, Novant Health, Rex Health Ventures, Spectrum Health Ventures and UNC Health, while existing investors — including Kaiser Permanente Ventures, Mayo Clinic, Frazier Healthcare Partners, SV Health Investors and H.I.G. BioHealth Partners — made reinvestments to support Leiters' growth, facility expansion and new product development.

L1 Health and Blantyre Capital have acquired European pharmaceutical businesses Remedica (Cyprus) and Sun Wave Pharma (Romania) as part of a debt-for-assets restructuring with Johannesburg-listed Ascendis Health; the deal closed on October 21. Remedica is a generics manufacturer with production and distribution across 160 countries, while Sun Wave Pharma is a leading nutraceuticals/nutritional-products provider in Eastern Europe.

Aceto has acquired A&C Bio Buffer Ltd, a GMP manufacturer of custom buffers and chemical blends based in Limerick, Ireland. The acquisition expands Aceto’s GMP product lines and European manufacturing footprint, complementing its earlier purchase of A&C and strengthening capabilities for biopharmaceutical and vaccine manufacturing.

PCI Pharma Services (PCI) has acquired Lyophilization Services of New England, Inc. (LSNE), a Bedford, New Hampshire–based CDMO, from private equity firm Permira. The deal expands PCI’s global sterile fill-finish and lyophilization capabilities, adding five FDA-approved facilities (U.S. and Spain) and strengthening its end-to-end manufacturing offering for biologics and injectables.

Element Materials Technology acquired Nanosyn, a San Francisco Bay Area-based contract development and manufacturing organization (CDMO) focused on drug discovery and small-batch API manufacturing, to strengthen Element’s pharmaceuticals and biopharmaceutical services in North America. Nanosyn operates three Bay Area facilities and has a team of more than 75 scientists, and the deal expands Element’s end-to-end life sciences capabilities from discovery through clinical development and regulatory support.

Pacira BioSciences agreed to acquire Flexion Therapeutics for $8.50 per share in cash plus one contingent value right (CVR) worth up to $8.00 per share tied to sales and regulatory milestones. The deal adds Flexion's marketed non-opioid OA knee pain therapy ZILRETTA and its clinical-stage pipeline to Pacira's non-opioid pain management portfolio; the transaction was expected to close in Q4 2021 and to be accretive to Pacira's earnings.

Supernus Pharmaceuticals agreed to acquire Adamas Pharmaceuticals in a cash tender offer valued at approximately $400 million upfront plus up to $50 million in contingent value rights, for total consideration of about $450 million. The acquisition gives Supernus two marketed CNS products (GOCOVRI and Osmolex ER), diversifies its Parkinson’s disease portfolio and is expected to be accretive with material synergies in 2022.

Xeris Pharmaceuticals completed its previously announced acquisition of Strongbridge Biopharma plc, combining the businesses under the newly named Xeris Biopharma Holdings, Inc. The transaction valued Strongbridge at approximately $267 million (including CVRs), resulted in former Xeris shareholders owning ~60% and Strongbridge shareholders ~40% of the combined company, and added Strongbridge executives to the Xeris Biopharma board.

Hikma Pharmaceuticals has agreed to acquire Custopharm Inc., a US-based generic sterile injectables company, from Water Street Healthcare Partners for an initial $375 million plus up to $50 million in contingent consideration. The acquisition adds Custopharm's 13 approved products, R&D capabilities and pipeline to Hikma's injectables franchise and is expected to be accretive to Hikma's Injectables operating margin.

An affiliate of H.I.G. Capital has acquired Aspire Pharma Limited, a UK-based developer and licensor of niche generic and branded specialty pharmaceuticals. Founder Graham Fraser-Pye remains with the business as chairman; financial terms were not disclosed and H.I.G. said it will support Aspire's organic growth, M&A activity and international expansion.

Azurity Pharmaceuticals, majority-owned by NovaQuest Private Equity, has entered into a definitive agreement to acquire Arbor Pharmaceuticals from existing investors including JW Asset Management and KKR. The companies will merge and operate as Azurity, creating a larger specialty pharmaceuticals business with an expanded portfolio across neuroscience, cardiovascular, GI, endocrinology and institutional markets; the transaction is expected to close pending regulatory approvals.

Neogen Corporation has acquired Atlanta-based CAPInnoVet, Inc., a companion animal health company that provides pet medications to the veterinary market. The acquisition gives Neogen entry into the retail parasiticide market and will integrate CAPInnoVet into Neogen's Animal Safety business segment; terms were not disclosed.

Abu Dhabi holding company ADQ has agreed to acquire Acino, a Swiss pharmaceutical company headquartered in Zurich, from private equity owners Avista Capital Partners and Nordic Capital. The transaction supports ADQ's strategy to build a regional pharmaceuticals and healthcare platform, expanding capabilities in manufacturing, commercialization and distribution across emerging markets.

Novaremed AG acquired Metys Pharmaceuticals AG in an all-share transaction, integrating Metys' clinical and preclinical non-opioid pain programs (including MP-101 and MP-103) into Novaremed's pipeline. The deal broadens Novaremed's focus from painful diabetic peripheral neuropathy (PDPN) to include chemotherapy-induced peripheral neuropathy (CIPN) and strengthens leadership with the election of Andrew J. Oakley to Novaremed's board.

Alora Pharmaceuticals, LLC closed the acquisition of Osmotica Pharmaceuticals plc's legacy U.S. business (including Osmotica Pharmaceutical US LLC, Vertical Pharmaceuticals, LLC and Trigen Laboratories, LLC) and the Marietta, Georgia manufacturing facility on August 27, 2021. Osmotica received approximately $111 million in proceeds, which it said would be used to retire a substantial portion of outstanding debt and to focus the company on its ophthalmic product UPNEEQ.

Recro Pharma (NASDAQ: REPH) acquired San Diego–based CDMO IRISYS for approximately $49.85 million in cash, stock and a seller promissory note, transforming Recro into a bi‑coastal, full‑service CDMO. The acquisition expands Recro's capabilities (including aseptic fill/finish and lyophilization), diversifies its client base and adds near‑term revenue and backlog.

ADDvise Group AB has entered into a share purchase agreement to acquire all outstanding shares of Medisuite, LLC, an online pharmacy based in Cary, North Carolina that specializes in men's health medications. The purchase price is approximately USD 10.3 million (combination of cash, a promissory note and potential earn-outs); closing is expected in August 2021 and the acquisition is financed with ADDvise's own funds.

Pace Analytical Life Sciences, a CDMO subsidiary of Pace Analytical Services (itself a portfolio company of Aurora Capital Partners), has acquired Drug Delivery Experts, LLC, a San Diego-based CDMO specializing in complex injectable formulations and drug‑device combination product development. The acquisition expands Pace’s injectable and long‑acting/extended‑release capabilities and brings DDE’s scientific leadership into Pace’s west‑coast operations as DDE transitions to the Pace brand.

Element Materials Technology, a London-headquartered testing, inspection and certification provider, has acquired Arch Sciences Group, a specialist analytical services and laboratory solutions provider to the pharmaceuticals sector. The deal (which sees Limerston Capital exit its investment in Arch) brings Element a team of ~170 employees across five locations and establishes Element's entry into the European pharmaceutical market, expanding its life sciences capabilities.

Partners Group has agreed to acquire Pharmathen, the leading European drug delivery technology and pharmaceutical manufacturing company, from BC Partners in a transaction valued at approximately EUR 1.6 billion. The deal transfers control of Pharmathen to Partners Group (acting on behalf of its clients) and is aimed at supporting the company’s continued growth — including an intensified push into the US market — building on strong R&D and manufacturing capabilities.

Hempsana Holdings Ltd. (formerly Stralak Resource Inc.) completed a previously announced three‑cornered amalgamation to acquire Hempsana Inc., making Hempsana a wholly‑owned subsidiary. The combined company will focus on manufacturing cannabis derivatives and extracts (including vapeables, topicals and infused consumables) from Hempsana's Health Canada standard processing licensed and EU‑GMP‑compliant facility; HHL's shares are expected to trade on the Canadian Securities Exchange under the ticker HMPS.

Philip Morris International (PMI) agreed to acquire UK-based inhaled drug-delivery specialist Vectura Group plc in an all-cash recommended offer valuing Vectura at GBP 852 million (150 pence per share). The acquisition is intended to accelerate PMI's "Beyond Nicotine" strategy by adding inhaled-therapeutics R&D, device/formulation capabilities and a pipeline of inhaled and oral product opportunities.

Philip Morris International has agreed to acquire Fertin Pharma, a Denmark-headquartered specialist CDMO in oral and intra-oral delivery technologies, from EQT Private Equity for a headline enterprise value of DKK 5.1 billion. Fertin Pharma — which operates sites in Denmark, Canada and India and employs more than 860 people — will strengthen PMI's smoke-free and beyond-nicotine product capabilities; the transaction is subject to customary approvals.

Aztiq Pharma Partners completed a $100 million financing to acquire a newly issued 17% equity stake in Alvogen US at a pre-money valuation of $350 million, with Morgan Stanley leading the financing. The funding will support increased R&D investment and expansion of branded sales channels in the U.S., and following the transaction Aztiq holds a combined direct and indirect stake of approximately 40% in Alvogen US.

Novo Integrated Sciences, through its wholly owned subsidiary Novo Healthnet Limited, completed the acquisition of Acenzia Inc., a Windsor, Ontario-based nutraceutical manufacturer and diagnostics developer. The all-share transaction closed on June 24, 2021 and is valued at $14,884,039; Novo said the purchase will give it direct control of development, manufacturing and distribution of wellness products and personalized diagnostics.

ARCHIMED, through its MED Platform I fund, has acquired Stragen Pharma, a Switzerland-based developer, registrant and distributor of complex generics. The deal gives ARCHIMED majority ownership while Stragen's founder Jean‑Luc Tétard and management retain a significant minority stake; ARCHIMED plans to invest in product portfolio expansion and operational capabilities to accelerate growth in the generics market.

BioVie Inc. acquired the biopharmaceutical assets of privately held NeurMedix, including NE3107, an orally administered small-molecule inhibitor targeting neuroinflammation and insulin resistance. The deal paid NeurMedix shareholders newly issued BioVie shares and cash at closing, with additional contingent cash and equity payments tied to clinical and regulatory milestones; the acquisition expands BioVie's pipeline into neurodegenerative diseases and oncology.

Aceto, a global provider of specialty materials for life sciences and advanced technology end markets, acquired Eugene, Oregon-based Cascade Chemistry, a CDMO specializing in active pharmaceutical ingredients (APIs) and advanced intermediates. The acquisition strengthens Aceto's U.S. cGMP custom manufacturing capabilities and expands North American API manufacturing capacity; Cascade Chemistry recently announced a facility expansion that will triple its clinical-stage API capacity.

ACON Investments’ Latin America Opportunities Fund V completed the acquisition of Vitalis Group, a manufacturer and wholesaler of generic injectable pharmaceuticals with production facilities in Colombia and Mexico. The Fund invested alongside select limited partners (DEG, FMO and Proparco) to support Vitalis’ regional expansion and cross-selling of its broad product portfolio across Latin America.

CoreRx, Inc. has acquired Nucleo Life Sciences, a boutique CDMO based in San Rafael, California, expanding CoreRx’s US West Coast development presence and formulation capabilities. The deal, supported by CoreRx’s majority owner NovaQuest Private Equity and other shareholders, will integrate Nucleo’s Fast-to-Clinic formulation expertise (including spray-dried dispersions and NucleLoad) into CoreRx’s development and manufacturing platform.

An investor group led by NewSpring Mezzanine, alongside Tecum Capital, Leedon Park Capital and PNC Bank provided a growth capital injection into Spirit Pharmaceuticals LLC, backing CEO and founder Ajoy Joshi. The funding will support the Long Island-based private-label developer, packager and distributor of over-the-counter pharmaceutical products as it expands capacity (two additional facilities, 11 packaging lines) and deepens relationships with big-box retailers, medical distributors and e-commerce customers.

Aceto has acquired A&C, a global GMP manufacturer of specialty excipients, buffers and process solutions, expanding Aceto's self-manufacturing and custom product capabilities for the vaccine, cell culture and biopharmaceutical markets. The deal adds GMP manufacturing, packaging and ingredient offerings and expands Aceto's North American and European footprint; financial terms were not disclosed.

Signet Healthcare Partners, a New York-based growth equity firm, has made a growth equity investment in Ascendia Pharmaceuticals, a North Brunswick, New Jersey-based specialty CDMO. The proceeds will fund Ascendia's facility expansion and increased manufacturing capacity; Signet principals James Gale and Dr. Theron Odlaug will join Ascendia's board.

Acino has completed the acquisition of a select portfolio of prescription pharmaceutical products and food supplements from the IlmixGroup group of companies in Russia. The deal (asset purchase) includes multiple brands used in gynaecology, oncology, urology and dermatology and is accompanied by manufacturing and supply agreements with MiraxBioPharma to ensure continued local production.

Funds managed by SK Capital Partners completed the acquisition of Catalent Pharma Solutions' Blow‑Fill‑Seal (BFS) sterile CDMO business and relaunched the business as Woodstock Sterile Solutions. The single‑site Woodstock, Illinois operation will operate independently under new CEO Paul Josephs, supporting global pharmaceutical and biologics customers; Catalent was the seller and debt financing was provided by Cerberus Business Finance.

ANI Pharmaceuticals completed the acquisition of Novitium Pharma for $163.5 million (including $89.5M cash and $74M equity, plus up to $46.5M in contingent earn-outs), adding a U.S.-based R&D engine and CDMO manufacturing capacity. The deal, financed with a new $300M Term Loan B, a $40M revolver and a $25M PIPE investment from Ampersand Capital Partners, is expected to be immediately accretive and expand ANI's generics, contract manufacturing and 505(b)(2) capabilities.

Altaris Capital Partners has acquired Perrigo's prescription pharmaceuticals business for $1.55 billion and completed the carve-out, renaming the business Padagis. The business, a leader in generic prescription pharmaceuticals with more than 1,300 employees across six U.S. and Israeli locations and a portfolio of 200+ product families (800 SKUs), will be headquartered in the United States as a standalone company.

PMC Group International, Inc. announced the acquisition of Cobra Investments Management Inc. and its two subsidiaries, Copperhead Chemical Company Inc. and Copperhead Investments Inc., effective February 5, 2021. Copperhead, headquartered in Tamaqua, Pennsylvania, is a long-established manufacturer of pharmaceutical-grade nitroglycerin and energetic chemicals for defense; PMC said the deal strengthens its pharmaceutical manufacturing capabilities and creates synergies with its global pharma and specialty-chemicals businesses.

Jazz Pharmaceuticals plc has entered into a definitive agreement to acquire GW Pharmaceuticals plc for $220 per ADS (comprised of $200 cash and $20 in Jazz ordinary shares), implying total consideration of approximately $7.2 billion ($6.7 billion net of GW cash). The boards of both companies approved the transaction, which is expected to close in Q2 2021 subject to GW shareholder approval, court sanction and customary regulatory clearances; the combined company will strengthen Jazz's neuroscience portfolio and global commercial footprint.

The Vistria Group and Excellere Partners purchased all outstanding equity interests of SCA Pharmaceuticals from Enhanced Healthcare Partners. SCA Pharma, an FDA-registered 503B outsourcing facility with sites in Windsor, Connecticut and Little Rock, Arkansas, will continue to be led by CEO Milton Boyer while the new owners plan to accelerate facility expansion, automation and growth.