Life Therapeutics acquires Pyramid Biological Corp
Biological Corporation in a deal that increases Life Therapeutics
presence in the source plasma sector - a market that has nearly
doubled, from $125 million (€103 million) to $230 million,
averaging over 6 per cent annual growth.
The acquisition will allow Life Therapeutics to increase its plasma collection capacity and expand its share of the global hyperimmune plasma and biodiagnostic markets. Under the terms of the agreement Pyramid are to pay $13 million plus assumption of $7 million debt. An additional $5 million is subject to milestones. The acquisition is expected to close in mid-August.
"Combined with our current operations, the company will now have 13 plasma collection centres in eight states with 380 employees," said Dr Hari Nair, chief executive office and managing director of Life Therapeutics.
"This acquisition will also allow us to expand our market share of the normal source plasma market," added Dr Nair.
The plasma market encompasses the collection of human blood plasma from paid donors, the sale of "source" plasma to fractionators, and the use of the source plasma by fractionators as a raw material in the manufacture of pharmaceuticals.
These pharmaceuticals include: Factor VIII - clotting factor prescribed to haemophiliacs, Intravenous Immunoglobulin (IVIG) - used to treat patients with immune deficiencies or disorders involving the immune system and Albumin, used to treat liver disease.
"Essentially, this acquisition will complete the transformation of our company from one with limited small R&D revenue to substantial revenues and profits," added John Manusu, CFO of Life Therapeutics.
