Kindeva merges with Meridian to create global CDMO specializing in drug-device combinations
Kindeva Drug Delivery and Meridian Medical Technologies have merged to create a global contract development and manufacturing organization (CDMO) focused on drug-device combination products.
The two companies have potentially complementary capabilities. Kindeva, formerly known as 3M Drug Delivery Systems, is a developer and manufacturer of drug-device combination products that leverage its inhalation, transdermal, and intradermal drug delivery technologies.
Meridian is a leading manufacturer of emergency autoinjectors that is best known for its involvement in the production of EpiPen treatments for anaphylaxis.
Altaris is the matchmaker in the merger. The healthcare investment firm acquired Kindeva from 3M for $650m (€613m) in 2020. At the time, Aaron Mann, the then CEO of Kindeva, outlined how the deal would support “an ambitious growth plan that involves significant capital investments.”
One year ago, Altaris bought Meridian from Pfizer, which sold the unit for approximately $51m in cash and recognized a loss of approximately $167m in conjunction with the transaction. Pfizer entered into a three-year manufacturing services agreement, which includes a two-year extension option, as part of the sale.
Having added two drug delivery specialists to its portfolio, Altaris decided to combine the companies. The new CDMO has kept Kindeva’s name, with Meridian operating as, “Meridian Medical Technologies, a Kindeva Company.” Milton Boyer, formerly the CEO of Meridian, is CEO of the combined company.
“The combination of Kindeva and Meridian creates a clear market leader in the drug-device CDMO sector. Customers will benefit from our enhanced scale and broader array of drug delivery solutions,” said Boyer.
Meridian’s merger with Kindeva follows a challenging period for the company. In recent years, plaintiffs have named Meridian in a lawsuit that accuses Pfizer and Mylan of conspiring to delay market entry of generic EpiPen through the settlement of patent litigation in violation of federal antitrust law. Pfizer agreed to pay $345m to resolve multi-district litigation
Pfizer also received a civil investigative demand from the U.S. Attorney’s Office related to alleged quality issues involving the manufacture of auto-injectors at the Meridian site. The site received a FDA warning letter for failing to thoroughly investigate complaints about EpiPen and EpiPen Jr. products.
