Life sciences company Cambrex Corp. (CBM) Wednesday completed its previously announced acquisition of Avista Pharma Solutions, a biotech firm engaged in the analytical testing and development of generic pharmaceutical products.
The buyout, a move aimed at strengthening Cambrex’s position in the field of early-stage small molecule development and testing services, includes Avista’s four facilities in the US and Europe, as well as its various service offerings. The transaction was funded through a combination of cash on hand and borrowings. After the integration of Avista’s workforce, Cambrex currently has about 2,000 employees.
The $252-million transaction is expected to enhance Cambrex’s small molecule contract development and manufacturing organization. Shares of the New Jersey-based company had slipped to a one-year low late December. However, they made strong gains in early trading Wednesday, continuing the recovery started last week after a long losing streak.
The $252-million transaction is expected to enhance Cambrex’s small molecule contract development and manufacturing organization
The ongoing expansion initiatives suggest that the stock is likely to bounce back this year from the recent lows, offering the risk-loving investors an opportunity to buy. The company’s impressive track record and strong financial base, which positions it to meet long-term liabilities, justify the bullish view.
Last year, Cambrex had purchased Halo Pharma as part of its efforts to expand market share and customer base. The latest deal is expected to give the company significant cross-selling opportunities, leveraging Avista’s analytical testing and formulation development capabilities.
Headquartered in Durham, North Carolina, Avista is one of the leading manufacturers of small molecule innovator and generic active pharmaceutical ingredients.
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