LGM Pharma has acquired the formulation development and drug product contract manufacturing business of Nexgen Pharma. Financial details of the transaction were not disclosed.
The combination brings together LGM Pharma’s Active Pharmaceutical Ingredient (API) sourcing, distribution and supply chain management with Nexgen Pharma’s drug product contract development and manufacturing (CDMO) services. The combined firm, which will continue to be known as LGM Pharma.
LGM Pharma accesses APIs from a global network of more than 250 fully accredited CGMP manufacturing partners, optimizing API sourcing for customers worldwide while providing supply chain security and risk mitigation strategies.
Nexgen specializes in the development and manufacture of solid dose, powder, semi-solid, and liquid drugs. It provides customers a manufacturing solution that includes formulation development; analytical method development and process validation; ANDA / NDA regulatory support and submission; stability studies; raw material and finished product testing; and packaging and distribution.
The acquisition brings Nexgen’s manufacturing and warehouse distribution facilities and employees in California and Texas to LGM Pharma, along with its formulation development, laboratory, and pilot plant manufacturing employees and facilities in Colorado. In all, LGM Pharma is gaining 150 employees and more than 100,000 square feet of fully equipped facilities.
“This is a transformational acquisition that allows us to greatly expand the services we provide to a substantially enlarged customer base,” said Prasad S. Raje, PhD, 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 U.S.-based drug product manufacturing capacity to LGM is ideal. Our complementary pharmaceutical capabilities and shared commitment to innovation, quality, and customer service will drive a vibrant and growing business that sets new standards for leadership in the pharmaceutical sector.”
“We are proud of the pharmaceutical CDMO business our family and talented employees built over many years and are delighted the business has been acquired by LGM Pharma, which is an ideal partner to carry on our tradition of quality and service while expanding the range of capabilities and services for our respective customers,” said Kyle Brown, CEO of Nexgen Pharma. “This 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.”