ANI Pharma Acquires CDMO WellSpring Pharma for $18 MillionBy
ANI Pharmaceuticals, a Baudette, Minnesota-headquartered specialty pharmaceutical company, has acquired WellSpring Pharma Services, an Oakville, Canada-headquartered contract development and manufacturing organization (CDMO) of drug products, for $18 million in cash.
WellSpring is a CDMO with capabilities in solid oral, semi-solids and liquids that operates out of a 100,000-square-foot site in Ontario, Canada that ANI acquired as part of the transaction. The site manufactures drug product for both the US and Canadian prescription drug markets. WellSpring currently generates $15 million to $20 million dollars in annual revenues and has approximately 100 employees.
WellSpring has an assorted customer base, focused on both branded and generic drug products. The company currently manufactures 17 commercial products for 11 different customers and is assisting customers on 13 additional products that are in development or awaiting US Food and Drug Administration approval.
Through this acquisition, ANI says it intends to broaden its existing contract manufacturing platform and use the acquired facility and capabilities to expand and accelerate the re-commercialization effort associated with ANI’s pipeline of acquired abbreviated new drug applications that require technology transfer.
ANI has made several recent acquisitions to expands its generic-drug portfolio. In May 2018, the company acquired a portfolio of six generic products, related manufacturing and supply agreements, and equipment and technical know-how from Amneal Pharmaceuticals and Impax Laboratories for $2.3 million. The transaction was the result of a divestiture process mandated by the US Federal Trade Commission in connection with Amneal Pharmaceutical’s business combination with Impax Laboratories, which closed in early May.
Earlier this year (April 2018), ANI also acquired 23 previously marketed generic drug products from IDT Australia, a CDMO, for $2.6 million and a limited single-digit royalty for one product. Additionally, ANI acquired the active pharmaceutical ingredient for one of the acquired products. In 2015, ANI had secured the US licensing rights and 40% to 50% of the net profits upon commercialization for these products from IDT for $1.0 million. The acquisition of the products from IDT gives ANI full control of the re-commercialization program and the vast majority of the economics for these products.
Source: ANI Pharmaceuticals