Aesica predicts more CMO consolidation and hints at acquisitions

Aesica predicts more CMO consolidation and hints at acqusitions

Aesica has predicted that CMO sector consolidation will continue and hinted that it is considering strategic acquisitions as a part of a bid to generate $1bn revenue.

The UK-headquartered firm shared its opinion with after we asked it to predict the impact Patheon’s merger with DSM’s pharmaceutical products business would have on the contracting industry.

The firm told us it “believes that the outsourcing trend will continue within the pharmaceutical sector, with customers driving to reduce the overall number of partners that they use” adding that “the service provider base will continue to see further consolidation in the future with fewer larger providers.”

Aesica also said that it plans to take advantage of this growing demand and aims to grow its revenues into the $1bn (€719m) range through “further strategic acquisitions” and expansion of its European manufacturing network.

Last year, Aesica CEO Robert Hardy told The Journal newspaper the firm's annual revenue is just under £200m.

Previous strategic purchases have seen Aesica buy manufacturing facilities from Belgian drugmaker UCB and acquired UK-based formulation development services firm, R5.

European expansion

The comments about European expansion follow just a week after Aesica announced that its manufacturing facility in Queenborough, UK has been validated to produce drugs for the US market.

Aesica set up the $48m plant in 2013 as a production hub for an oral type 2 diabetes drug being developed by one of its customers

The firm told us: “The facility was purpose built for the commercial manufacture of this product for one of our strategic partners” but did not name the customer involved.

The Queenborough site produces active pharmaceutical ingredients product and finished products including manufacture and packaging of solid dose forms, liquids and granules into blisters, bottles or sachets.

Additional capabilities of the Queenborough site include complex device assembly and speciality packaging and the manufacture and packaging of high potency products.”

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