Warburg Pincus bags CMO biz with JHP buy; eyes B+L sale

Private equity group Warburg Pincus has acquired sterile injectables specialist JHP Pharmaceuticals for $195m and says it has a “sizable amount” to invest in the CMO.

In addition to developing its own range of products, Michigan, US-headquartered JHP provides contract manufacturing and development services to the pharmaceutical industry from its production facility in Rochester.

Elizabeth Weatherman, MD of healthcare at Warburg Pincus said: “JHP represents an attractive investment opportunity for us and we have reserved a sizeable amount of additional capital to fund growth opportunities that will transform the business well beyond what it is today.”

Warburg Pincus’ investments in the pharmaceutical services sector is contract research organisation (CRO) Research Pharmaceutical Services (RPS), which it acquired in 2011 for $227m, and India-based pathology services lab chain Metropolis Healthcare.

Beyond this the US investment group’s existing portfolio of includes China-based generic antibiotics manufacturer Harbin Pharmaceuticals Group, albumin supplier China Biologic Products and oncology drug developer Talon Therapeutics.

Warburg looks to off load eye specialist Bausch + Lomb

Warburg Pincus has also owned the US eye care firm Bausch + Lomb which – according to a Bloomberg report earlier this week – is currently the subject of takeover interest from a number of Big Pharma firms, including Abbott Laboratories, Johnson & Johnson and Sanofi.

The suggestion is the investment group is asking for $10bn for the firm and has been in contact with a number of interested parties already.