West Pharma continues acquisitive spree

The move follows West Pharma's divestment of its drug delivery business, now renamed Archimedes Pharma, earlier this year. This transaction, along with recently expanded bank debt, freed up resources for a series of acquisitions in the US firm's core activities in closure systems and syringe components for use with injectable drugs.

The injectable drug market is growing strongly at present, driven by the rising number of biologic drugs coming though the biopharma industry's pipelines.

Since then, West Pharma has snapped up the business assets of contract manufacturer Tech Group for $140m and analytical testing service company Monarch Analytical Laboratories for approximately $5.6m.

Under the acquisition agreement, West will acquire 90 per cent of Medimop's shares in return for $36m in cash, West shares valued at $4 million and up to $1.8 million of contingent cash consideration. Freddy Zinger, the founder and president of Medimop, will continue to hold the remaining 10 per cent of the company, which West will have the option to acquire in the future.

The transaction is expected to close in the third quarter of 2005. West Pharma anticipates that the acquisition of Medimop will be earnings-neutral for 2005 on sales of approximately $8 million for the second half of the year.

"We believe this acquisition is a strong strategic fit with our business in the injectable drug market and demonstrates our commitment to products that improve the safety and effectiveness of drug administration,"​ said Steven Ellers, who was recently promoted to the post of chief operating officer of West Pharma.

Medimop provides customers with technologies and systems to enhance the reconstitution, transfer and administration of pharmaceutical products in therapeutic areas including multiple sclerosis, rheumatoid arthritis, vaccines, hormones and blood derivatives for haemophilia. Its products include MixJect, a vial adapter that allows the use of the same syringe for both mixing and injecting for drugs that need reconstituting prior to administration. West Pharma recently entered into this market segment with its Clip'n'Ject product, a proprietary, single use drug reconstitution system currently in commercial use on one drug product.

Many drug products, including the majority of recently introduced biotechnology products, require reconstitution at the point of use because they are produced as freeze-dried powders in order to preserve product efficacy during shipment and storage.

Medimop's business and management team will remain in Ra'anana, Israel. Medimop has approximately 20 employees and manufactures its products at locations in Israel and Germany.