New Pharmaceutical Intermediate Maker Swallows Galen, Aerojet Fine Chemicals
Aerojet Fine Chemicals provides development, scaleup, and production of pharmaceutical intermediates and bulk actives. The company specializes in highly energetic chemistries, and participated on 20% of the new compounds approved by the US Food and Drug Administration (FDA) in 1999. It operates a large facility in Sacramento, CA.
NextPharma is the creation of investment banker DLJ Merchant Banking Partners II, LP, and its health care-related investment group, Global Health Care Partners (GHCP). It was created to become a major contract pharmaceutical process development and manufacturing company.
Coupled to its lofty ambitions are some significant industry heavyweights who make up Global Health Care Partners. They include former SmithKline Beecham chairman/CEO Henry Wendt, former Rhone-Poulenc Rorer chairman/CEO Robert Cawthorn, former Merck KgaA president Ted Roberts, and former Pfizer VP manufacturing Maurice Wolridge.
DLJ Merchant Banking Partners II and Global Health Care Partners originally partnered with Galen when they acquired Pharmaceutical Fine Chemicals SA in 1997. In April 2000, NextPharma acquired Pharbil Pharma GmbH, the second largest pharmaceutical contract manufacturer in Germany.
Under the new deal, Pietro Stefanutti, Galen's majority owner, and GenCorp will both obtain significant ownership in NextPharma. Rob Miotke, president of Aerojet Fine Chemicals, will continue to run the business.
Galen's wholly-owned subsidiary, Galentis, was created by Stefanutti in mid-1999 to conduct a management buy-out of the former GRB Srl of Marcon, Italy. The company specializes in production and application of perchloryl fluoride, a highly selective fluorination agent. It used the technology to position itself as a supplier of advanced intermediates.