Two private equity firms, Thomas H. Lee Partners and Frazier Healthcare Partners, are teaming up to acquire a leading specialty contract development and manufacturing organization (CDMO). The firms are buying Adare Pharmaceuticals. a global provider of advanced pharmaceutical technologies, development and manufacturing. The company utilizes its differentiated pharmaceutical technology and microbiome scientific platforms to develop novel, improved medicines and therapies for the global market.
Adare has developed and manufactured more than 40 products sold by partners in more than 100 countries globally including Lacteol, Zoolac, Viactiv, and a number of branded and complex generic products. TPG Capital is selling Adare in this transaction, ending a five-year partnership between the two companies. Adare reported approximate revenues of $54.9 million.
Adare Pharmaceuticals will be rebranded as Adare Pharma Solutions. The acquisition includes Adare’s pharmaceutical technology and microbiome businesses as well, which are equipped with end-to-end CDMO capabilities and proprietary technologies. TPG Capital will retain rights to Adare’s Eosinophilic Esophagitis (EoE) product, which has been spun out into a separate entity.
CDMOs have remained relatively popular targets in 2020, with six transactions focused on a CDMO this year, according to results in our Deal Search Online database. The most recent deal was announced in March by Charles River Laboratories International, Inc. (NYSE: CRL) when it acquired Cellero, a premier provider of cellular products for cell therapy developers and manufacturers worldwide for $38 million in cash.
Back in February, Catalent, Inc. (NYSE: CTLT) paid $315 million in cash for MaSTherCell Global, a technology-focused cell and gene therapy CDMO serving leading cell therapy innovators. MaSTherCell was backed by Great Point Partners, SFPI-FPIM and Orgenesis Inc. (NASDAQ: ORGS).