US-based life sciences firm Cambrex Corporation has acquired a 51% stake in Hyderabad-based Zenara Pharma for $20 million. Zenara, which will now be called Cambrex Zenara, is a pharmaceutical company focused on the formulation of final dosage form products.
Cambrex plans to buy the remaining 49% in early 2016 based on a weighted combination of a multiple of 2015 EBITDA and cumulative EBITDA for the years 2011 through 2015, said a statement.
The deal would help Cambrex become a global supplier to the large and growing nicotine replacement therapy ("NRT") market providing both active pharmaceutical ingredients ("APIs") and finished dosage form products. It will also help Cambrex integrate its API and drug delivery capabilities with Zenara's range of formulation and finished dosage form capabilities. Besides, Cambrex will now get a foot in the India market and access to lower cost production.
"We are excited to partner with Zenara and believe the combination of capabilities and technologies will make us a global leader in providing products for the approximately $1.5 billion NRT market. The integration of Cambrex's API and drug delivery business with Zenara's
formulation and finished dosage experience enables Cambrex to provide greater benefit to our pharmaceutical customers," said Steve Klosk, the President and CEO of Cambrex.
"Our technology and cost position enable us to supply cost effective products to our customers in both developed and higher growth emerging markets. We are currently supporting our customer's launch of NRT gums and lozenges in India, with roll-outs in several other high potential markets to follow in 2011 and beyond," said Ashok Narasimhan, the President of Cambrex Zenara.