Cambrex buys Zenara to enter nicotine replacement market
pharmafile | November 9, 2010 | News story | |Â Â API, Cambrex, Cambrex Zenara, India, Pharmaceutical ingredients, Zenara Pharma, generic APIs, nicotine replacementÂ
Pharmaceutical ingredient manufacturer Cambrex has taken a majority stake in Indian formulator Zenara Pharma for $20 million in a move that expands its position in the $1.5 billion nicotine replacement therapy market.
Hyderabad-based Zenara focuses on the formulation of final dosage form products, including the Nulife brand of nicotine gums and lozenges, and operates a solid oral dose manufacturing facility with an annual capacity of around a billion units a year.
Cambrex says it plans to acquire the remaining 49% of Zenara in 2016, but in the meantime will integrate its API and drug delivery capabilities with Zenara’s broad range of formulation and finished dosage form capabilities.
A key part of the strategy for the new Cambrex Zenara entity will be the development of formulated products for fast-growing pharmaceutical markets such as India.
Steve Klosk, chief executive of Cambrex, said the combination of the two businesses “gives Cambrex a leading position within the nicotine replacement therapy market, supplying both APIs and finished dosage form products”, while also providing “a foothold in the growing Indian pharmaceutical market”.
Ashok Narasimhan, president of Cambrex Zenara, noted that the company is already supporting the launch of nicotine products in India and will see additional launches in other countries from next year.
The acquisition came just ahead of Cambrex’s reporting of its third quarter results, which saw a 15% decline in sales and operating profit down to $1.3 million from $5.6 million a year ago. This was the result of the timing of shipments, supply chain disruption at a customer’s facility, lower volumes and pricing of certain drug delivery products and reduced custom development and controlled substances shipments.
The decreases were partially offset by higher sales volume of generic APIs, Klosk said in a conference call.
Phil Taylor
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