CDMO Penn Pharma Acquired By Packaging Coordinators For $215M

By Suzanne Hodsden

After seven years of guidance by Bristol-based private equity firm, LDC, Penn Pharmaceutical Services Limited, a Welsh based CDMO, has been acquired by American company, Packaging Coordinators (PCI). The companies expect this move will be a “joining of forces,” as Penn Pharma’s development, manufacturing, and packaging services will complement PCI’s own Clinical Trial and Commercial Supply services.

LDC invested £33m ($56M) in 2007 and, until now, has been working closely with Penn Pharma to strategize growth and implement plans for expansion and specialization. The company expanded its manufacturing facility last year to 15,000 sq ft. and now employs 300 of people in Tredegar, located in the South Wales. According to LDC’s Candida Morley, the new facility “has enabled the business to compete more effectively on a global scale, thereby driving future revenue and shareholder value.” LDC’s imminent exit will yield a profit of three times their original investment.

Penn Pharma specializes in the development and manufacture of highly potent solid dosage pharmaceuticals and serves a global customer base, including those in the U.S., Europe and Japan. This specialization and expertise attracted PCI, a company that provides packaging solutions to the healthcare industry, and which is currently looking to broaden their market foothold further into the drug development process.

According to PCI CEO Bill Mitchell, “With Penn Pharma’s services, we can partner with clients at the very earliest stages of drug development to support them with drug formulation, analytical development, drug manufacturing, clinical packaging, global distribution, and ultimately supporting the product’s commercial launch.”

In addition to acquiring Penn Pharma, PCI has also invested in Cold Chain infrastructure expansions and has announced plans to open a 97,000 sq. foot storage and distribution facility in the U.S. in September.