CDMO Tergus Pharma plans to merge with MedPharm, a U.K.-based company that specializes in the development of dermatology, mucosal membrane and other products.
The move will boost the combined firm's global position in topical and transdermal pharmaceuticals, the companies said in a joint press release.
Tergus, which is based in Durham, North Carolina, is a portfolio company of Great Point Partners. MedPharm falls under the umbrella of Ampersand Capital Partners.
Financial details of the deal weren’t disclosed.
Going forward, the companies will operate under the MedPharm moniker. Tergus CEO Michael Kane was named chief executive of MedPharm while Patrick Walsh will retain his title of MedPharm’s chairman, according to the press release.
“Pharma clients have been seeking a reliable, integrated service offering for their ophthalmic, topical and transdermal development and manufacturing projects,” Walsh said in a statement. “This merger creates an immediate option with two organizations already well-positioned in the industry.”
Tergus operates a 100,000-square-foot production plant in North Carolina, which makes hormone-based and highly potent drugs. MedPharm, for its part, operates sites in North Carolina and England.
Great Point Partners will retain a “significant” minority ownership stake in the merged company while Ampersand Capital Partners and Bourne Partners Strategic Capital will assume majority ownership.
MedPharm is no stranger to North Carolina. In 2021, the company announced plans to double its U.S. footprint with the construction of a new facility located in Research Triangle Park, just three miles from its facility in Durham.