Siegfried buys AMP to enter sterile filling sector
pharmafile | June 12, 2012 | News story | Manufacturing and Production |Â Â AMP, Alliance Medical Products, SiegfriedÂ
Switzerland-based Siegfried Holding has entered the market for sterile filling services with the acquisition of US contract manufacturing organisation (CMO) Alliance Medical Products.
The deal includes an upfront cash payment of $58 million as well as additional payments depending on AMP meeting agreed profitability goals for the fiscal year ending December 31, 2013. Siegfried said it expects the transaction to be accretive to be accretive to earnings this year.
“The addition of sterile filling capabilities has been a strategic goal of the Siegfried Group and will advance its technology base,” said the Swiss firm in a statement.
“The acquisition … represents an important step toward additional profitable growth,” it added, noting that AMP had revenues of $20 million last year. Siegfried itself posted net sales of 328 million Swiss francs ($341m) in 2011, with the bulk of its revenues coming from the exclusive synthesis of active pharmaceutical ingredients and intermediates for pharmaceutical clients, as well as bulk sales of generic APIs and finished dosage forms.
The Swiss company has been steadily adding to its technology base in recent years, with a considerable investment in high-potency API production for example that sits well alongside AMP’s aseptic filling expertise.
“Our acquisition of AMP expands our exceptional CMO platform into the sterile filling market, a particularly attractive segment,” commented Dr Rudolf Hanko, Siegfried’s chief executive.
The market for sterile filling is expanding in line with the increased emphasis on biologic drugs in the pharmaceutical sector, as well as a trend away from terminal sterilisation of products.
“Our association with Siegfried opens exciting growth and expansion possibilities for AMP,” said Juan Valdes, chief executive of AMP.
“The combination of sterile filling services with the production of APIs is unique in the custom manufacturing market,” he added.
Phil Taylor
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