MedPharm, an Ampersand Capital Partners portfolio company, announced on July 8 a merger with Tergus Pharma, backed by Great Point Partners. The combined organization will operate under the MedPharm name, establishing a leading, end-to-end contract development and manufacturing organization (CDMO) with robust scientific, clinical trial manufacturing and commercial production capabilities.
Tergus Pharma is a CDMO that provides formulation development, in vitro permeating testing, in vitro release testing, skin biology, analytical services and clinical manufacturing services for branded and generic dermatology products.
MedPharm is an end-to-end contract service provider of topical and transepithelial products supporting early-phase research, formulation development and in vitro testing services in addition to both clinical and commercial manufacturing. MedPharm has locations in the United Kingdom and United States, including a 97,000-square-foot facility in Durham, North Carolina.
As part of this transaction, Tergus Pharma CEO Michael Kane has been appointed CEO of MedPharm while Patrick Walsh will continue to serve as Executive Chairman of MedPharm. Tergus lead investor Great Point Partners will retain a significant minority ownership stake in the newly combined MedPharm, while private equity firms Ampersand Capital Partners and Bourne Partners Strategic Capital assume majority ownership. Further terms of the transaction were not disclosed.
According to data captured in the LevinPro HC database, this transaction represents the 18th CDMO transaction of 2024. This is a significant increase over last year, when there were 10 CDMO transactions announced between January 1, 2023, and July 8, 2023.
