DPT Laboratories Expands New Jersey Location With Purchase of Meda Pharma Facilities

Texas-Based DPT Laboratories announced the acquisition of Meda Pharmaceutical’s Lakewood, New Jersey facilities for an undisclosed amount, expanding DPT’s current Lakewood base by 90,000 square feet.

This acquisition includes much needed additional cold storage space, a new and larger laboratory, and, as part of the deal, Meda Pharma employees who work to manufacture MUSE, Meda’s urethral suppository product.

Gene Ciolfi, VP and general manager in Lakewood stated that the new facilities would allow DPT “to explore additional opportunities to further our capabilities from development through commercialization.”

This Lakewood real estate deal and expansion is the first investment and sign of growth for DPT’s New Jersey location since DPT was acquired  in a surprising move by Renaissance Pharma in 2012.

Renaissance Pharma, a private equity firm focused solely on healthcare, bought DPT Laboratories from its parent company, DFB. At the time of the acquisition, Pierre Frechette, president and chief officer of Renaissance expressed specific interest in DPT’s Lakewood facilities.

Frechette discussed DPT as a “well-run company with great potential” and said that Renaissance’s expertise in steriles would be an asset to DPT. In an interview, Frechette said “DPT’s Lakewood, New Jersey facility is just getting started.”

DPT Laboratories specializes in resolving development and manufacturing challenges in sterile and non-sterile semi-solid and liquid dosages. The Lakewood location focuses on sterile processing, filling equipment for small-volume parenterals, ophthalmic preparations, preservative-free nasal sprays and sterile ointments.

It was this sort of specialization which first attracted Renaissance. According to Frechette, specialization of difficult products are the best way for a CDMO to ensure growth and be internationally competitive.

Frechette explained to Contract Pharma, “There’s been a trend to bring things back to domestic facilities, for a number of reasons. There’s competition from foreign facilities, so that means North American sites have to be very good at what they do. You can’t just battle those offshore sites over cost. So we focus on niche products and complex technologies at… DPT.  That’s a real manufacturing strategy.”

This newest expansion signals the start of this strategy, and time will tell if it pays off for DPT.