Capsugel cuts deal to buy Scotland’s Encap
pharmafile | March 5, 2013 | News story | Manufacturing and Production |Â Â Capsugel, encapÂ
Capsugel has bought Scotland’s Encap Drug Delivery in yet another bout of merger & acquisition (M&A) activity in the capsule sector.
The transaction boosts Capsugel’s liquid and semi-solid encapsulation-based product development, and clinical and commercial manufacturing – which are provided by Capsugel’s recently-formed Dosage Form Solutions (DFS) business unit. Terms of the deal have not been disclosed.
“The combination of DFS and Encap creates greater depth and breadth of our technology platforms, product development capabilities, and manufacturing infrastructure, which will collectively enhance our ability to improve our healthcare customers’ products in areas such as bioavailability, stability, dosing and delivery, and overall time-to-market,” commented Amit Patel, president of Capsugel DFS.
Encap operates a pharmaceutical product development and manufacturing site at Livingston, West Lothian, which has passed inspections by both the US Food and Drug Administration (FDA) and the UK’s Medicines and Healthcare products Regulatory Agency (MHRA).
Encap’s plant is equipped to handle high potency active pharmaceutical ingredients (HPAPI), while the company’s proprietary targeted release technologies (DuoCap and Encode) and abuse deterrence technologies (Abusolve) will add to Capsugel’s own portfolio in these areas.
Capsugel set up DFS last month to consolidate the company’s technology platforms in liquid-filled capsules, softgels, solid-lipid pellets, and a lipid formulation software system aimed at accelerating lipid-based product development for customers. The business unit’s emerging targeted release technology platform includes specialised capsules that enable different types and levels of controlled release delivery.
Stephen Brown, chief executive of Encap Drug Delivery, said the acquisition by Capsugel “will globalise the reach of our products and services”.
Other recent M&As among capsule specialists Mitsubishi’s $630 million bid for Qualicaps – due to complete later this month – and Patheon’s $255 million acquisitions of Banner Pharmacaps and Procaps last year. Capsugel itself was sold by Pfizer to private equity group KKR for $2.38 billion in 2011.
Phil Taylor
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