UDG Healthcare buys US-based Cambridge BioMarketing for up to $35m
(ShareCast News) - UDG Healthcare has announced the acquisition of US-based healthcare communications business Cambridge BioMarketing for up to $35m.
The FTSE 250 healthcare services provider said the acquisition provides a platform for growth, specifically in Cambridge, Massachusetts and Oakland, California, both of which have a strong biotech presence. It follows the acquisition of Vynamic, a US-based healthcare industry management consulting firm, announced on 12 July 2017, both of which are in line with Ashfield's strategy to expand in the US.
Cambridge BioMarketing specialises in orphan and rare disease drug launches, a fast-growing area of drug development and commercialisation. UDG said the orphan drug and rare disease market is expected to grow by a compound annual growth rate of 11% between 2017 and 2022 to $209bn, with orphan drugs estimated to account for 21.4% of prescription sales by 2022.
The company is being bought for an initial consideration of $30m, with an additional consideration of up to $5m payable over the next twelve months, based on the achievement of agreed financial targets.
Chief executive officer Brendan McAtamney 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."