NextPharma unloads U.S. manufacturing arm, Bioserv

U.K.-based CMO NextPharma is bagging its manufacturing operations in the U.S. to concentrate on its production in Europe.

It says it will continue to sell into the North American market but is selling its U.S. manufacturing arm, Bioserv, to private equity player KESA Partners for an undisclosed sum. NextPharma had jumped into the U.S. market 5 years ago when it picked up Bioserv, but now says its business will be better served by putting its attention back in Europe, where it will focus on its manufacturing specialties like hormones, penicillins, and cephalosporins, CEO Franck Latrille said.

KESA, on the other hand, gets Bioserv's 35,000-square-foot San Diego facility and capabilities in aseptic and non-aseptic bulk formulation, filtration, stoppering and lyophilization services. NextPharma's website says the San Diego operation includes controlled temperature storage and distribution services.

NextPharma has continued to expand its European operations, specifically in Germany, where it opened on a new cold chain facility in Werne in February.

GBI Research is predicting that the contract manufacturing market could more than double in size by 2018, expanding to $59.9 billion from $26 billion in 2010, in large part because of growing demand in Asia. Most of the CMO industry operates out of the U.S. and Europe.

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