Novacap announces CDMO acquisition

Global player in advanced pharmaceutical to acquire Boston-based PCI Synthesis

Novacap, a worldwide player in pharmaceutical synthesis, has signed an agreement to acquire Boston-based PCI Synthesis, a leading pharmaceutical contract development and manufacturing organisation (CDMO).

“The acquisition of PCI Synthesis perfectly fits with our strategic roadmap as it will strengthen our offering to the pharmaceutical industry and provide Novacap with a strong and innovative platform to accelerate our development in the US." said Pierre Luzeau, CEO of Novacap.

Luzeau said the company has been impressed by the outstanding achievement of PCI Synthesis over the last years and its promising pipeline of projects. "The two companies operate complementary CDMO activities and share common values such as entrepreneurship, operational excellence and dedication to customer satisfaction. We look forward to working with the PCI Synthesis team."

Located in Boston’s booming biotech and pharmaceutical hub, PCI Synthesis offers its customers a wide range of services, including process research and early-stage development as well as commercial production of new chemical entities (NCEs), generic APIs and other speciality chemical products.

The company operates an R&D facility in Devens and a manufacturing facility in Newburyport and generates a turnover of US$32 million.

PCI Synthesis has reported growth over the last years, most recently closing its fifth consecutive year-to-year of double-digit growth. This has been driven by more than forty new customers and an expansion into new offerings such as GMP manufacturing for nutraceuticals and pharma foods, large-scale cryogenic manufacturing, large-scale chromatography, controlled substance development, and medical-grade polymers.

The combination of the two companies will provide PCI Synthesis with additional resources to continue its development while reinforcing Novacap’s global leadership in pharmaceutical synthesis with 12 cGMP sites, two main R&D centres and its comprehensive range of services and technologies dedicated to clinical development and commercial manufacturing.

Ed Price, founder and president of PCI Synthesis., commented: “This acquisition validates our strategy, resources, offerings as well as our great employees and wonderful customers. Since we started the company more than 20 years ago, we’ve continued to evolve and innovate, and by teaming with Novacap, we will continue to do so, now with access to Novacap’s deep technical expertise to better serve our customers."

The closing of this acquisition remains subject to customary merger control approval. BlackArch Partners served as the exclusive financial advisor to PCI Synthesis.