AMRI to Acquire OsoBioBy
AMRI has signed a definitive agreement to acquire all of the outstanding membership interests of Oso Biopharmaceuticals Manufacturing, LLC for $110 million in cash. OsoBio is a contract manufacturer of injectable drug products, including sterile liquid, suspension, and lyophilized formulations.
“The acquisition of OsoBio is highly complementary to our finished dose manufacturing business and is consistent with our strategy to be the preeminent supplier of custom and complex drug-development services and products to the pharmaceutical industry,” said William S. Marth, AMRI's president and chief executive officer, in a company press release. “OsoBio adds significantly to our sterile manufacturing capabilities, extending our industry-leading position in early-stage contract manufacturing to now include OsoBio's preeminent large-scale commercial production. In addition, we expect to realize savings in capital costs associated with the previously planned facility expansion.”
“We are very excited about the synergies that our Albuquerque operations will bring to AMRI as part of its organization,” said Milton Boyer, OsoBio's president, in the release. “The addition of AMRI's experience and capabilities in early-phase development greatly increases the value proposition for our customers, providing a single source to address all sterile fill/finish needs from Phase I development complete to commercial supply.”
The acquisition and associated fees are expected to be financed through cash currently held by AMRI, and, subject to Hart-Scott-Rodino clearance and other conditions to closing, is expected to be completed in the third quarter of 2014.
OsoBio is located in Albuquerque, New Mexico. Its core capabilities include liquid fill and lyophilized products, highly potent compounds, cytotoxics, proteins and peptides, monoclonal antibodies, vaccines, liposomal suspensions, and controlled substances. The company has provided manufacturing support for more than 250 unique products, and its development pipeline, which includes multiple late-stage products, is expected to be an important contributor for future growth.
OsoBio is expected to continue to operate independently within AMRI's Drug Product business unit. Milton Boyer, the current president and chief executive officer, will lead the OsoBio team and report to Steven Hagen, PhD., AMRI's senior vice president of manufacturing and pharmaceuticals.