LGM Pharma has expanded its supply chain services offering by buying the formulation development and drug product CDMO business of Nexgen Pharma, the API sourcing and distribution specialist announced on Monday.
Financial terms of the deal were not disclosed.
The acquisition brings LGM Pharma access to Nexgen’s manufacturing and warehouse distribution facilities in California and Texas, and its formulation development, laboratory, and pilot plant manufacturing facilities in Colorado.
The current combined workforce of the two operations is 150 employees, all of whom will move to LGM Pharma.
In total, LGM Pharma is gaining 150 employees and more than 100,000 square feet of fully equipped facilities, along with expertise in all aspects of pharmaceutical finished product development and manufacturing.
“This is a transformational acquisition that allows us to greatly expand the services we provide to a substantially enlarged customer base,” said Prasad Raje, CEO of LGM Pharma. “As part of our continued growth and diversification strategy LGM is committed to significant investment in both infrastructure and personnel as part of this acquisition, and with the current challenges facing the industry the timing for adding US-based drug product manufacturing capacity to LGM is ideal.”
Nexgen Pharma specializes in the development and manufacture of solid dose, powder, semi-solid, and liquid drugs. CEO Kyle Brown said the divestiture “will allow us to focus on our other healthcare segments while our pharmaceutical CDMO employees and facilities become part of a highly supportive and synergistic organization.”
LGM Pharma provides streamlined API supply chain management from R&D through commercialization, with access to APIs from a global network of more than 250 cGMP manufacturing partners, while also providing supply chain security and risk mitigation strategies.