BRIEF—PharmaZell and Novasep enter into exclusive merger negotiations

German active pharmaceutical ingredient (API) maker PharmaZell and France-based Novasep, a contract development and manufacturing organization (CDMO) have entered into exclusive negotiations to create a leading European platform in the attractive API manufacturing and CDMO space with a complementary set of differentiated technologies and highly diversified base of blue-chip pharma and biotech customers.

Novasep’s capabilities are highly complementary to PharmaZell’s expertise in the manufacturing of complex APIs requiring special handling procedures or technologies. Combining the two businesses would create a leading, highly diversified, and highly differentiated API manufacturing and CDMO platform.

The combined business would be able to draw from a comprehensive and broad technology suite for complex molecules and a global production footprint to support pharma and biotech customers over the complete lifecycle of a drug.

The combined business would generate nearly 500 million euros ($591 million) of revenues and employ close to 2,000 employees across seven production and R&D sites in Europe (Germany, France and Italy), two sites in India and one in the USA.

The proposed transaction would be backed by PharmaZell’s current majority shareholder Bridgepoint, which is a leading quoted private assets growth investor focused on the middle-market with 27 billion euros AUM and a local presence in the USA, Europe and China.

The proposed acquisition remains subject to the fulfilment of customary conditions precedent for this type of transaction including the information and consultation of works councils and other regulatory approvals.