Fresenius Kabi 503B outsourcing facility USA

M&A | 3 min read

Regulated information
Nazareth (Belgium)/Rotterdam (The Netherlands), 5 July 2022 – 7AM CET

Fagron expands its US sterile compounding footprint with East coast acquisition

Fagron, the leading global player in pharmaceutical compounding, has acquired from Fresenius Kabi a 503B outsourcing facility in Boston. The transaction covers all operational aspects of the facility, including customers, suppliers, and around 80 employees, as well as a supply agreement with Fresenius Kabi.

Rafael Padilla, CEO of Fagron commented: “This acquisition is an important step for us in realizing our strategic objective of becoming the leading global platform for sterile outsourcing services. The demand for outsourced compounding is increasing in the US and aligned to increased regulatory scrutiny necessitates a high focus on quality. Whilst this acquisition will initially be dilutive, we are confident our team will successfully bring the facility in line with our FSS US operations in due course. This expansion will allow us to elevate our US sterile compounding business to the next level and compete with the top-3 players in the US market.

Andrew Pulido, president Fagron North America commented: “We are very happy with the opportunity to add this best-in-class 503B outsourcing facility to our operations. By adding the capacity of this facility to our current operations in Wichita, we not only make another important step towards meeting the continuously growing demand for sterile outsourcing services in the US market, but also significantly strengthen our geographic proximity towards existing and potential customers on the East Coast. This facility was built by Fresenius Kabi to initially serve the leading academic medical center in the area through scale, cost efficiencies and provide flexibility around production while maintaining very high-quality standards. We expect the transition of the facility towards Fagron processes will take approximately 12 to 18 months and expect it to start making a positive contribution to results in the 2nd semester of 2023. We welcome the Fresenius Kabi Compounding employees in Boston to the Fagron team.”

John Ducker, president and CEO Fresenius Kabi USA commented: “We are pleased to have found a buyer like Fagron, with its experience in hospital compounding, to assure continuity of this business for employees and customers. We are confident that the excellent team in Boston, combined with Fagron’s expertise, will continue to be a compounding partner of choice for hospitals. This divestiture is part of a strategy at Fresenius Kabi to focus on growth in biopharmaceuticals, medical technologies, clinical nutrition, and a broad range of injectable medicines used across the continuum of care.