Private equity fund buys out sterile injectables maker LSNE

London investment fund Permira sees opportunity in the contract sterile injectables business and so has acquired U.S.-based Lyophilization Services of New England.

Sterile drug manufacturing is a growth area, and a London-based investment fund has bitten off a piece of it with the acquisition of a U.S. CDMO that specializes in the field.

Management and private equity firm Permira is buying out Lyophilization Services of New England (LSNE) for an undisclosed sum. LSNE has three manufacturing facilities located in New Hampshire that provide lyophilization services to pharma, biotech and medical device clients. It specializes in small to medium-size batches.

Matt Halvorsen, who founded the company in 1997, will retain a significant ownership position and continue to be its CEO, Permira said. Claes Glassell, the former CEO of CMC Biologics, will become chairman of the board, provide management support and help with the company’s growth strategy. 

Whitepaper

Simplify and Accelerate Drug R&D With the MarkLogic Data Hub Service for Pharma R&D

Researchers are often unable to access the information they need. And, even when data does get consolidated, researchers find it difficult to sift through it all and make sense of it in order to confidently draw the right conclusions and share the right results. Discover how to quickly and easily find, synthesize, and share information—accelerating and improving R&D.

There has been a significant amount of growth in contract sterile manufacturing in recent years as a growing proportion of new drugs are sterile injectables. In 2015, Pfizer snapped up sterile injectable and biosimilar specialist Hospira for $15 billion.

And last year, Germany’s Fresenius Kabi announced it would invest $250 million in its manufacturing site in Melrose Park, Illinois into a showcase for its sterile injectable capabilities. That came after Fresenius agreed to buy a nearly new 115,000-square-foot plant and small portfolio of products from Becton Dickinson, which built the plant in Wilson, North Carolina as a way to boost its syringe manufacturing sales.

Shanghai Fosun Pharmaceutical Group last year struck a deal to buy an 86% stake in India's Gland Pharma for $1.35 billion. Approval of that deal by Indian regulators was recently delayed. Hyderabad-based Gland has four manufacturing sites in India that handle a wide variety of container-types and fillings.

Suggested Articles

That didn’t take long. Sanofi CEO Paul Hudson has only been at the reins for a couple months, but on Tuesday, he unveiled a major shakeup.  

New "gold standard" data could further increase doctors' confidence in multiple myeloma med Darzalex, Johnson & Johnson says.

Could Monday's cancer buyout be a hint about what Sanofi CEO Paul Hudson will unveil at Tuesday's investor confab? Analysts think so.