Corporate Banner
Satellite Banner
Technology
Networks
Scientific Communities
 
Become a Member | Sign in
Home>News>This Article
  News
Return

AMRI to Acquire Cedarburg Pharmaceuticals, Inc.

Published: Friday, March 28, 2014
Last Updated: Friday, March 28, 2014
Bookmark and Share
Broadens contract development and manufacturing capabilities with high value, complex API business.

AMRI has announced that it has signed a definitive agreement to acquire all the outstanding shares of Cedarburg Pharmaceuticals, Inc. for $38.2 million in cash. The transaction, including $2.8 million of assumed liabilities, is valued at $41 million.

Cedarburg Pharmaceuticals is a contract developer and manufacturer of technically complex active pharmaceutical ingredients (API’s) for both generic and branded customers. The transaction is consistent with AMRI’s strategy to be the preeminent supplier of custom and complex drug development services and product to both the branded and generic pharmaceutical industry.

“We are very excited to be joining efforts with Cedarburg as they bring a unique blend of expertise in complex API, a scalable business infrastructure and extensive customer relationships that will augment our existing capabilities and services,” said William S. Marth, AMRI’s president and chief executive officer. “This transaction represents an important first step in building out our API capabilities, broadens our offerings and customer base and provides us with an ideal platform to pursue additional value creation opportunities.”

Located in Grafton Wisconsin, Cedarburg Pharmaceuticals is a trusted, long-time partner to many of the industry’s leading pharmaceutical companies and is well respected for its expertise in developing technically differentiated APIs, its reliability of supply and track record of quality. Cedarburg’s core capabilities include controlled substances, steroids, prostaglandins, vitamin D analogs, conjugation chemistry and inorganics for the analgesic, ophthalmology and oncology therapeutic areas.

Cedarburg has provided API development and manufacturing support for 13 approved products. Cedarburg’s attractive development pipeline includes multiple late stage products and is expected to be an important contributor for future growth.

On a stand-alone basis, Cedarburg’s forecasted full year 2014 revenue is approximately $19 million, with adjusted EBITDA between $5.5 million and $5.7 million, implying a purchase price multiple of approximately 2 times 2014 revenue and approximately 7 times 2014 adjusted EBITDA at the midpoint of the range. Adjusted EBITDA excludes any deal related costs or purchase accounting impacts.

The transaction is expected to close in early April 2014. Based on the anticipated timing of the close, the acquisition is expected to add between $13 and $14 million to AMRI’s revenue in 2014. AMRI anticipates full year run-rate synergies of approximately $1.5 million of EBITDA within 12 months of closing and the acquisition is expected to be accretive to AMRI’s 2014 adjusted diluted EPS in the range of $0.06 to $0.07 per share.

Items excluded from non-GAAP financial results are expected to include all transaction-related costs, including amortization of intangible assets. The acquisition and associated fees are expected to be financed through cash currently held by AMRI.

Cedarburg is expected to continue to operate independently within AMRI’s API business unit. Chuck Boland, currently co-founder and executive vice president of business development will lead the Cedarburg team and report into George Svokos, AMRI’s senior vice president sales and general manager - API.


Further Information
Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 2,500+ scientific posters on ePosters
  • More Than 3,800+ scientific videos on LabTube
  • 35 community eNewsletters


Sign In



Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into TechnologyNetworks.com you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

AMRI, PerkinElmer to Collaborate on Drug Discovery
Albany Molecular Research (AMRI) and PerkinElmer are collaborating to provide drug discovery infrastructure and services in AMRI's newly launched drug discovery center.
Thursday, June 18, 2015
AMRI to Close Holywell, U.K. API Manufacturing Facility
Company plans to cease operations at the site by the end of 2015.
Thursday, April 09, 2015
AMRI Proposes To Close UK-Based API Manufacturing Facility
The proposed closure would affect approximately 64 positions.
Friday, February 20, 2015
AMRI Announces CFO Transition
Michael M. Nolan, senior vice president and chief financial officer, will be departing AMRI.
Thursday, January 15, 2015
AMRI To Acquire Aptuit Drug Product Development Businesses
Significantly expands AMRI's analytical services capabilities and extends drug product development services to include sterile injectable formulation development.
Friday, January 09, 2015
AMRI to Acquire Oso Biopharmaceuticals Manufacturing
Acquisition significantly expands contract manufacturing capabilities to include commercial scale sterile injectables.
Tuesday, June 03, 2014
AMRI Announces Senior Level Leadership Appointment
The appointment of Michael A. Luther, Ph.D. as Senior Vice President of Discovery sees AMRI expanding its biology capabilities.
Thursday, October 17, 2013
AMRI Awarded Contract from the UK Government
Seven-year contract awarded for the development and manufacture of an active ingredient under clinical evaluation.
Thursday, October 03, 2013
FDA Performs Re-inspection of AMRI Burlington MA Facility
Issues Form 483 for three inspectional observations.
Friday, July 26, 2013
AMRI Burlington Receives DEA Approval to Handle Controlled Substances
Approval to handle Schedule 2 and 2N controlled substances at this location further supports AMRI SMARTSOURCING™ offering.
Wednesday, June 19, 2013
AMRI Promotes Susan Collins to Director, Business Development
Ms. Collins is responsible for leading AMRI’s North American Discovery Business Development team.
Tuesday, June 18, 2013
AMRI Announces Appointment of Chairman of the Board of Directors
Company has appointed William S. Marth as Chairman of the Board, effective June 5, 2013.
Friday, June 07, 2013
AMRI and Ono Broaden SMARTSOURCING™ Collaboration
New agreement extends drug discovery and development collaboration between the companies.
Friday, April 26, 2013
AMRI Announces the Promotion of Richard Saffee
Company promotes Mr. Saffee to Vice President and General Manager of large scale manufacturing.
Wednesday, January 09, 2013
AMRI Announces Five-Year Extension of API Supply Agreement with Shire
AMRI enters into a multi-year supply agreement for an undisclosed product.
Tuesday, October 23, 2012
Scientific News
Health Risks of Saturated Fats Aggravated by Immune Response
Research shows that the presence of saturated fats resulted in monocytes migrating into the tissues of vital organs.
Changing the Biological Data Visualisation World
Scientists at TGAC, alongside European partners, have created a cutting-edge, open source community for the life sciences.
NIH Study Finds Calorie Restriction Lowers Some Risk Factors for Age-Related Diseases
Two-year trial did not produce expected metabolic changes, but influenced other life span markers.
Immunotherapy Agent Benefits Patients with Drug-Resistant Multiple Myeloma in First Human Trial
Daratumumab proved generally safe in patients, even at the highest doses.
Low-level Arsenic Exposure Before Birth Associated with Early Puberty in Female Mice
Study examine whether low-dose arsenic exposure could have similar health outcomes in humans.
Inciting an Immune Attack On Cancer Cells
A new minimally invasive vaccine that combines cancer cells and immune-enhancing factors could be used clinically to launch a destructive attack on tumors.
‘Mutation-Tracking’ Blood Test for Breast Cancer
Scientists have developed a blood test for breast cancer able to identify which patients will suffer a relapse after treatment, months before tumours are visible on hospital scans.
Cellular Contamination Pathway for Heavy Elements Identified
Berkeley Lab scientists find that an iron-binding protein can transport actinides into cells.
Intensity of Desert Storms May Affect Ocean Phytoplankton
MIT study finds phytoplankton are extremely sensitive to changing levels of desert dust.
Common ‘Heart Attack’ Blood Test May Predict Future Hypertension
Small rises in troponin levels may have value as markers for subclinical heart damage and high blood pressure.
Scroll Up
Scroll Down
Skyscraper Banner

Skyscraper Banner
Go to LabTube
Go to eposters
 
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
2,500+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
3,800+ scientific videos
Close
Premium CrownJOIN TECHNOLOGY NETWORKS PREMIUM FREE!