Recipharm rescues Ashton Pharma
been nervously awaiting to discover its fate, having spent five
months in administration after its former owners Inyx Inc. suffered
major financial woes.
Outsourcing-Pharma.com has learned that the Swedish contract manufacturing organisation (CMO) bought the troubled firm for an undisclosed sum in a deal that closed late last night.
The firm said that the purchase brings additional capacity and capabilities to the group for solid dose, sterile ampoules and vials as well as inhalation technology, as well as "a significant presence in one of Europe's major pharmaceutical markets".
The acquired business will be renamed Recipharm Ashton.
The troubles first kicked off for Inyx Inc.'s two UK units when on 28 June it was announced that they were forced into administration by Inyx Inc.'s financier Westernbank Puerto Rico, due to insolvency, i.e. they owed more money than they were capable of paying back, a reported $46m for Inyx Pharma and $54m for Ashton.
Westernbank sent a letter to the two manufacturing firms, along with Inyx Europe, which is an intermediate holding company that owns and operates Ashton Pharma, alleging that the three firms "were in default under the loan and security agreements," it was reported in the Securities and Exchange Commission (SEC) filing at the time.
Roy Bailey and David Duggins from Ernst & Young (EY) were then appointed by the UK courts as joint administrators to the three companies.
At the time they confirmed that "Both facilities are good profitable businesses… and any buyers would take on the assets and employee liabilities, while the administrators would pay off the companies' debts using the money from the sale."
The debts were incurred by the businesses through the financing arrangements of the parent company so the situation these two sites found themselves in was highly unfortunate.
Inyx Pharma was given an earlier reprieve from the situation than its much larger sister site Ashton, having already been under new management since September 13 when the entire business, including assets and staff, were sold as a going concern to a company called Pharmaserve North West.
Since then, the administrators have been continuing negotiations for the sale of Ashton, which is based in Lancashire and produces dry powder inhalers, sterile and injectable products, solid dose tablets/capsules and blister packaging.
Following today's news, it is now Ashton's turn to finally try and put this dark chapter behind it and move on.
