UDG Healthcare has made its second significant acquisition in a week with the purchase of Cambridge Biomarketing, a US health communications business, in a deal worth up to $35 million.
The Irish healthcare company has agreed to acquire the US company for an initial $30 million, with an additional fee of up to $5 million payable over the next year contingent on its financial performance.
Cambridge Biomarketing is focused the marketing of “orphan” and rare disease drugs, a sector that is expected to be worth $209 billion by 2022. Orphan drugs are synthetic drugs that are yet to be fully commercially developed.
Brendan McAtamney, UDG’s chief executive, said: “The acquisition of Cambridge Biomarketing provides us with industry-leading expertise in the fast-growing area of orphan and rare disease drugs and adds further capabilities in patient-focused communications programmes, an increasing focus for pharmaceutical companies.
“The acquisition is in line with our strategic ambitions to grow our healthcare communications business in the US and expand the range of services we offer to our global pharmaceutical customer base.”
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UDG said that the acquisition provided a platform for growth, specifically in Cambridge, Massachusetts, and Oakland, California, both of which have a strong biotech presence.
UDG disposed of its Irish supply chain distribution businesses in April last year and has used the proceeds to acquire higher-margin, higher-growth businesses. Other recent acquisitions include Sellxpert, a German contract sales outsourcing business, and Pegasus, a specialist healthcare communications company, in May 2016.
The company spent $32 million last week on the acquisition of Vynamic, a US healthcare management consulting business. Vynamic was acquired for an initial $22 million, with an additional $10 million payable over three years based on the achievement of agreed profit targets.
UDG is intent on growing Ashfield, its commercialisation services business, in the US through acquisitions such as Vynamic and Cambridge Biomarketing.
Maureen Franco, chief executive of Cambridge Biomarketing, said the deal would help it to expand its scope internationally and reach new customers.
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“We are thrilled to be joining UDG Healthcare. Being part of the UDG group provides us with a deeper, complementary suite of services including healthcare communications, consulting, market access, clinical services and meeting and events, as well as a global footprint — allowing us to better serve our clients and providing increased opportunities for our employees,” she said.