CROs and CDMOs are Still Selling Fast

CROs and CDMOs are Still Selling Fast

This past week Permira, a global investment firm based in the United Kingdom, spent $2.4 billion for Cambrex Corporation (NYSE: CBM). Cambrex is a premier contract development and manufacturing organization (CDMO) in the small molecule space and provides drug substance, drug product and analytical services across the entire drug lifecycle. The $2.4 billion purchase price includes the company’s net debt, for 4.2x revenue and 16.3x EBITDA,  represents a 47.1% premium to Cambrex’s closing price of $40.78 on August 6. The target reported a number of its own acquisitions recently, making the CDMO a more attractive buy. Cambrex acquired Halo Pharma in 2018 and Avista Pharma Solutions... Read More »
Will Catalent’s Deal Launch the Next Wave of CRO M&A?

Will Catalent’s Deal Launch the Next Wave of CRO M&A?

Contract research organizations (CROs), like contract development and manufacturing organizations (CDMOs), have been popular targets for private equity firms and strategic buyers for years. The deals seem to come in waves, and the healthcare M&A market may be in for a tsunami this year. In 2013, some 20 transactions for CRO/CDMO targets were announced, with some hefty price tags attached. Royal DSM paid $1.95 billion to buy Patheon. Other big deals that didn’t disclose prices came from KKR & Co. (NYSE: KKR), which acquired both PRA International and ReSearch Pharmaceutical Services that year. CRO deal volume rose a little in 2014 (27 deals), then ebbed in 2015 (11 deals). The... Read More »