PharmaZell, the German producer of highly resilient and speciality APIs, and France-based Novasep, a CDMO focused on complex small molecules and ADCs have entered into exclusive negotiations to create a leading European platform in the attractive API manufacturing and CDMO space.
The two companies have a complementary set of differentiated technologies and highly diversified base of blue-chip pharma and biotech customers.
Novasep leverages a wide range of differentiated technologies including high energy and cryogenic chemistries and industrial-scale chromatography. It is a world leader in ADC and HPAPI, fast-growing targeted cancer therapy segments.
The combined business would generate nearly $579m of revenue
Novasep's capabilities are highly complementary to PharmaZell's expertise in the manufacturing of complex APIs requiring special handling procedures or technologies. Combining the two businesses would create a leading, highly diversified, and highly differentiated API manufacturing and CDMO platform.
The combined business would be able to draw from a comprehensive and broad technology suite for complex molecules and a global production footprint to support pharma and biotech customers over the complete lifecycle of a drug. The combined business would generate nearly €500m ($579m) of revenues and employ close to 2,000 employees across seven production and R&D sites in Europe (Germany, France and Italy), two sites in India and one in the US.
The proposed acquisition remains subject to the fulfilment of customary conditions precedent for this type of transaction including the information and consultation of works councils and other regulatory approvals.
Dr Sylke Hassel, CEO of PharmaZell who would lead the combined business, said: "The combined entity would serve our customers as a partner for complex molecules. Combining Novasep and PharmaZell, this new integrated approach would benefit our customers who would gain from the simplicity and efficiency of working with one company along the lifecycle of a drug."
Dr Michel Spagnol, CEO of Novasep who would join the Board of the combined business, said: "With PharmaZell, we have found a highly complementary partner from a technology, customer and capability perspective. The transaction would enhance our customer value proposition, increase diversification and allow the combined business to address a much larger customer need."