Date: 2013-09-12
Type of information: Company acquisition
Acquired company: Molecular Profiles (UK)
Acquiring company: Columbia Laboratories (USA)
Amount: $25 million (€15.8 million)
Terms: * On September 12, 2013, Columbia Laboratories has announced that it has acquired Molecular Profiles, a privately-held, cash-flow positive, U.K.-based pharmaceutical development services company, for total consideration of approximately $25.0 million comprising $16.7 million in cash and 1,051,323 shares of Columbia common stock, representing ten to eleven times Molecular Profiles’ projected EBITDA for its fiscal year ending July 31, 2014. On an unaudited basis, Molecular Profiles’ recorded approximately $9 million in revenues for its fiscal year ended July 31, 2013.The newly-issued shares are subject to a twelve-month lock-up period. Excluding transaction costs, the acquisition is expected to be immediately accretive. Additionally, Columbia expects to realize a double-digit impact to its EBITDA and operational synergies of up to $400,000 annually.This acquisition was unanimously approved by the Boards of Directors of both companies and received the approval of Molecular Profiles’ shareholders. No further approvals are anticipated to be required. Molecular Profiles’ CEO and co-founder, Dr. Nikin Patel, will join Columbia’s Board of Directors.
Details: Based in Nottingham, England, Molecular Profiles provides pharmaceutical development, clinical trial manufacturing, advanced analysis and consulting services for the pharmaceutical industry worldwide. The company is one of The University of Nottingham’s spin-out businesses and was established in 1997 by an academic group at The University of Nottingham’s School of Pharmacy. The company offers innovative pharmaceutical development services (such as formulation and clinical manufacturing), as well as providing advanced material characterisation and expert consultation for Intellectual Property (IP) issues.
Related: drug development
