United Drug to buy Bilcare
PHARMACEUTICAL AND healthcare services group United Drug has announced that it is to acquire Bilcare Global Clinical Supplies for €61 million. The company is the British and US clinical services division of Bilcare Limited. Under the deal, Bilcare will retain its clinical supplies business in Asia.
The acquisition, which is expected to be completed by the end of the month, is United Drug’s third purchase since June, with the company spending about €100 million in its summer spree, according to Davy Research.
Bilcare Global is a leading clinical trials materials business providing services to global pharmaceutical and biotech manufacturers and clinical research organisations from facilities in the US and the UK. With facilities in Phoenixville, Pennsylvania and Crickhowell, Wales, the newly acquired business employs 195 people.
It provides the formulation, development, packaging, labelling and supply chain management of drugs used in the clinical trials process.
It is estimated that the gross assets of the combined business are $16 million and profits applicable to those assets in the last financial year were $4.6 million. The net assets on completion are expected to be $9.5 million.
United said Bilcare’s business was complementary to its existing commercial packaging business.
“The Bilcare acquisition is another very important step in the development of United Drug as we focus on margin expanding, international opportunities,” said United chief executive Liam Fitzgerald. “This business fits well alongside our existing packaging businesses in the US and Europe and will position us as a leading provider of services in the growing clinical trials materials market.”
United Drug recently bought medical communications consultancy Watermeadow and the Frankfurt-based drug group Pharmexx.
United Drug’s share price rose 2.5 per cent to €2.51 on the Iseq yesterday, up 6 cents.
Davy Research analyst Aiden O’Donnell said the Bilcare deal would add further scale to United Drug’s packaging and speciality division in Europe and the US.