Chapter 3
The Rise of Private Equity in CDMO: A Comprehensive Analysis (2019-2023)
In this analysis, I look into the escalating influence of Private Equity in the CDMO sector over the past four years. The report lists two dozen pivotal deals which are part of a wave of investment firms buying up contractors in the pharmaceutical business, indicating a transformative shift in the industry. These transactions are not limited to any particular therapeutic area; they span from small molecules and biologics to entire business divestitures. The objective is to shine light on how Private Equity firms are not merely investing but strategically positioning themselves to meet the increasing demand for specialized pharmaceutical services. While this analysis is extensive, it does not focus on any specific geographic region. Consequently, the transactions highlighted may only represent a fraction of the global activity, particularly in rapidly evolving markets like Asia. I highly welcome additional deal information for a more holistic understanding of this investment trend.
#1: Year 2019 - Thermo Fisher Scientific and Brammer Bio
- Details: Thermo Fisher Scientific acquired Brammer Bio for $1.7 billion. Brammer specializes in viral vector CDMO services. Brammer is owned by Ampersand Capital Partners, the only institutional investor in the company, and its founders.
- Source: Thermo Fisher Scientific to Acquire Brammer Bio for $1.7 Billion
#2: Year 2020 - GHO Capital Partners and Ardena
- Details: GHO Capital Partners LLP acquired Ardena, a Belgium-based CDMO, from Mentha Capital. Ardena has expanded its services through a series of acquisitions under its previous owner, Mentha Capital.
- Source: Belgian CDMO Ardena gets new private equity owners
#3: Year 2020 – Alcami, Madison Dearborn, Ampersand and TriPharm Services
- Details: Alcami Corporation, a North Carolina-based CDMO, acquired TriPharm Services (Now Part of Alcami) to expand its sterile fill-finish business. The acquisition was supported by Madison Dearborn Partners, LLC, Alcami’s existing majority owner, and Ampersand Capital Partners, the former majority owner of TriPharm.
- Source: Alcami Expands its Sterile Fill-Finish Capacity with Acquisition of TriPharm Services
#4: Year 2021 - EQT and Recipharm
- Details: Alcami Corporation, a North Carolina-based CDMO, acquired TriPharm Services (Now Part of Alcami) to expand its sterile fill-finish business. The acquisition was supported by Madison Dearborn Partners, LLC, Alcami’s existing majority owner, and Ampersand Capital Partners, the former majority owner of TriPharm.
- Source: Alcami Expands its Sterile Fill-Finish Capacity with Acquisition of TriPharm Services
#5: Year 2021 - Clayton, Dubilier & Rice and UDG Healthcare
- Details: Clayton Dubilier & Rice acquired UDG Healthcare for $3.7 billion. UDG is the parent company of contract packager, Sharp Services .
- Source: Private equity firm to buy UDG Healthcare in $3.7 bln deal
#6: Year 2021 - Danaher and Aldevron
- Details: Danaher Corporation acquired Aldevron, a DNA plasmid, mRNA, and proteins CDMO for $9.6-billion from EQT Group.
- Source: EQT Private Equity to sell Aldevron for USD 9.6 billion
#7: Year 2021 - Bain Capital, Cinven and Lonza's Specialty Ingredients
- Details: Bain Capital Ventures and Cinven acquired Lonza’s Speciality Ingredients for CHF 4.2 billion ($4.5 billion). The acquisition positions Lonza as a pure-player in bio/pharmaceuticals.
- Source: Bain Capital Private Equity and Cinven to acquire Lonza Specialty Ingredients
#8: Year 2021 - Carlyle Group and Vectura
- Details: The Carlyle Group acquired UK-based Vectura Group for $1.4 billion, focusing on inhalation specialist CDMO.
- Source: UK drug contractor to be sold to private equity firm in $1.4B deal
#9: Year 2021 - SK Capital Partners and Seqens
- Details: SK Capital Partners acquired French CDMO SEQENS from Eurazeo Investment Manager. Seqens was formed via multiple acquisitions.
- Source: SK Capital Partners acquires Seqens
#10: Year 2021 - Charles River and Vigene, Cognate
- Details: Charles River Laboratories acquired Vigene, a Maryland-based CDMO specializing in viral vectors, for up to $350 million. This acquisition complements Charles River’s existing gene-therapy CDMO capabilities, which were expanded through the $875-million acquisition of Cognate BioServices, a Charles River Company .
- Sources: Vigene Biosciences and Cognate BioServices
#11: Year 2021 - WuXi Biologics and multiple targets
- Details: WuXi Biologics completed multiple acquisitions in 2021, including facilities and companies, to expand its biomanufacturing and drug-product manufacturing capabilities: a Bayer site in Wuppertal, Pfizer’s facilities in Hangzhou, and CMAB Biopharma.
- Source: WuXi Biologics Completed Three Acquisitions to Enhance its Global Network
#12: Year 2021 - Catalent and multiple targets
- Details: Catalent acquired multiple companies in 2021 to expand its cell and gene therapy capabilities, including RheinCell Therapeutics, MaSTherCell Global and Promethera Biosciences’ HCTS.
- Sources: RheinCell Therapeutics, MaSTherCell and HCTS
#13: Year 2021 - Resilience and multiple targets
- Details: Resilience acquired Ology Bioservices and two commercial manufacturing facilities in North America, including a facility from Sanofi, to expand its biologics manufacturing capabilities.
- Source: Resilience Acquires Biologics CDMO Ology Bioservices
#14: Year 2022 - Vistria Group, GHO Capital Partners and Alcami
- Details: The Vistria Group and GHO Capital Partners LLP acquire a 50/50 controlling interest in Alcami Corporation from Madison Dearborn Partners, LLC and Ampersand Capital Partners. Ampersand Capital and Alcami Management will reinvest significant equity as part of the acquisition. Alcami specializes in drug product manufacturing, focusing on sterile fill-finish of both biologics and small molecules.
- Source: The Vistria Group Announces Investment In High Growth CDMO, Alcami
#15: Year 2022 - Astorg and CordenPharma
- Details: Astorg acquired German Corden Pharma – A Full-Service CDMO from International Chemical Investors Group.
- Source: Astorg acquires CordenPharma
#16: Year 2022 - Ampersand and Vibalogics
- Details: Ampersand Capital Partners acquired Vibalogics, a CDMO specializing in biologics.
- Source: CDMOs: The Private Equity Investment Case | Alvarez & Marsal
#17: Year 2022 - Permira and Cambrex
- Details: Permira acquired Cambrex, a CDMO specializing in small molecules, for $2.4 billion.
- Source: CDMOs: The Private Equity Investment Case | Alvarez & Marsal
#18: Year 2022 – Euroapi spun off from Sanofi
- Details: EUROAPI was launched as a stand-alone publicly traded company specializing in small-molecule APIs. Sanofi expects Euroapi to generate EUR 1 billion in sales in 2022.
- Source: Sanofi moves forward with EUROAPI listing on Euronext Paris
#19: Year 2022 - Fujifilm Diosynth Biotechnologies
- Details: FUJIFILM Diosynth Biotechnologies announced several large-scale biomanufacturing expansions, including a $1.6 billion investment to expand manufacturing at its sites in Hillerød, Denmark.
- Source: Fujifilm Diosynth Biotechnologies’ Biologics Production Facility Expansion, Hillerod, Denmark
#20: Year 2022 - Catalent and Metrics
- Details: Catalent acquired Metrics Contract Services, a full-service specialty CDMO with a facility in Greenville, North Carolina, for $475 million from Mayne Pharma Group Limited.
- Source: Catalent acquired Metrics Contract Services for $475 million
#21: Year 2023 - GHO Capital, Partners Group and Sterling Pharma Solutions
- Details: GHO Capital Partners LLP and Partners Group invested in Sterling Pharma Solutions, specializing in the early-stage development of antibody drug conjugates (ADCs). Partners Group acquires a significant minority stake, while GHO will remain Sterling’s majority shareholder.
- Source: GHO Capital and Partners Group invest in Sterling Pharma Solutions
#22: Year 2023 - Advent International, Warburg Pincus and Baxter's Biopharma Solutions
- Details: Advent International and Warburg Pincus LLC agreed to acquire Baxter’s Biopharma Solutions for $4.25 billion, specializing in sterile injectable products.
- Source: How Baxter’s $4B Sale of Biopharma Biz Fits With Broader Life Sciences Trends
#23: Year 2023 - Porton Advanced Solutions
- Details: Porton Advanced │ Cell & Gene Therapy CDMO/CRO raised $80 million in a Series B funding round to expand its cell & gene therapy CDMO platforms. The funding round was led by Merchant Health, a healthcare private equity fund of China Merchants Group. The round also saw participation from current shareholders of the company, Porton Pharma Solutions Ltd., CS Capital, HM Capital, Momentum Ventures, as well as from Fosun Health Holdings 复星健康控股 .
- Source: Porton raises funds for gene and cell therapy CDMO platforms expansion
#24: Year 2023 – PAG and RK Pharma
- Details: Hong Kong-based private equity firm PAG announced plans to invest up to $200 million in RK Pharma, a vertically integrated pharmaceutical company based in the U.S. with subsidiaries in India. PAG has invested more than USD1.5 billion in India in the last few years, including in Acme formulation.
- Source: Asian Private Equity Giant PAG To Invest Up To $200 Million In Indian Drugmaker