AmerisourceBergen acquires sterile compounder PharMEDium for $2.5bn
pharmafile | October 7, 2015 | News story | Research and Development, Sales and Marketing | AmerisourceBergen, mergers and acquisitions
AmerisourceBergen will now source compounded drugs for its hospital clients by manufacturing them itself after spending more than $2.5 billion to buy one of the largest sterile drug compounders in the US.
Pennsylvania-based AmerisourceBergen said it would pay $2.575 billion to acquire PharMEDium Healthcare Holdings from Clayton, Dubilier & Rice.
The private equity group bought control of the compounding company in early 2014, in the middle of a change in the industry when the FDA took responsibility for large operators like PharMEDium.
Founded in 2003, PharMEDium has compounding centers in Tennessee, Mississippi, Texas and New Jersey, all registered with the FDA, from which it ships custom-made meds to more than 3,000 hospitals.
AmerisourceBergen said that the deal is expected to close by the end of this year and that it will add between $0.22 to $0.26 a share to its adjusted earnings for fiscal 2016. PharMEDium will become a part of AmerisourceBergen Drug Corporation.
Steven Collis, AmerisourceBergen president and CEO, says: “The acquisition of PharMEDium strengthens our core business and meaningfully expands our innovative service offerings for health systems.
“PharMEDium’s impressive track record of growth and proven ability to consistently deliver high quality CSPs in key therapeutic areas make them the undisputed leader in an important growth area of the US healthcare market. PharMEDium is a compelling addition to our business, which allows us to provide differentiated offerings and further increases our ability to drive both value and efficiency for our health systems customers in a way that enhances patient safety and helps improve patient outcomes.”
The PharMEDium deal is the second major acquisition announced this year by AmerisourceBergen. This spring, it completed a $2.5 billion acquisition of the international animal health distribution company, MWI Veterinary Supply.
William Spalding, PharMEDium CEO, says: “We are excited about this transaction, which brings together two great brands built on the same strong foundation of patient safety and quality, service excellence and value to our customers.
“We are confident in our ability to leverage the depth and breadth of the AmerisourceBergen organisation to further enhance the efficiency and effectiveness of our hospital pharmacy CSP services and solutions.”
Yasmita Kumar
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