Italian API maker Olon bulks up with deal for competitor

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The roll-up in contract manufacturing continues. Italy’s P&R Group has added a Milan-based CMO to its active pharmaceutical ingredient business.

P&R, which is also based in Milan, said last week that it had acquired Infa Group, including three manufacturing sites, for an undisclosed sum. P&R owns Fidia Farmaceutici and API maker Olon, among other companies. Infa’s 400 employees and production plants Labochim and Sifavitor in Italy and Derivados Químicos in Spain will be added to Olon’s 800 employees and four API manufacturing facilities in northern Italy.

P&R said adding Infa will double Olon’s generic products to more than 200, as well as beef up its CDMO business. It is expected to boost Olon’s 2016 pro forma revenue of €200 million ($224.4 million) to more than €300 million ($336.6 million) for the year, “confirming the birth of a significant player in Europe as well as in the U.S.,” it said in a statement.

The Olon and Infa Group deal comes amid continuing consolidation in the API and contract manufacturing businesses. Patheon, which hooked up with DSM Pharmaceutical Products in 2014, spent a year pulling off deals to create a multibillion-dollar CDMO operation. Swiss life sciences company Lonza Group ($LONN) is reportedly making a run at Catalent ($CTLT), a U.S.-based pharma services company.

Just today, Sweden’s Recipharm reported it has completed the first phase of its $205 million (SEK 1.7 billion) two-stage deal for India’s Kemwell that expands both its drug development skills and API manufacturing. It has completed the $85 million acquisition of Kemwell’s operations in Sweden and Kemwell’s Cirrus Pharmaceuticals drug development business in Research Triangle Park, NC. It is also spending about $120 million to get operations in India that include FDA-approved API manufacturing.

- get the P&R announcement here 
- here’s the Recipharm release 

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