Drug manufacturer Quantum Pharma Plc has acquired pharmaceutical development and licensing outfit Lamda for £6.9m.
County Durham-based Quantum has acquired Lamda (UK) Limited, Lamda Laboratories SA and Lamda Pharmaceuticals SA as part of the deal.
Lamda provides outsourced research and development services to customers in the UK, Germany, Italy, Scandinavia and Greece, from its laboratories near Athens.
The group generated combined revenues of £1.5m and losses of £100,916 across the 2014 financial period.
Quantum’s full consideration for Lamda, paid out of cash reserves, includes £3.3m payable on completion, and £3.6m in two equal instalments — 12 and 24 months after completion.
Andrew Scaife, chief executive officer of Quantum Pharma Plc, said: “The acquisition of Lamda represents an important and exciting milestone for the Group and a further deployment of the funds raised at the time of our admission to AIM in December 2014 in accordance with the Group’s stated strategy.
“The addition of Lamda to the Group will be earnings enhancing from early 2016 and provides us with a significantly enlarged product portfolio, with latent value as well as in-house development capability.
“By adding further vertical integration to Quantum it gives the Group even more control over speed of delivery as well as cost levels whilst maintaining our high standards of customer service. Lamda also gives us a footprint in Europe which we can use as a platform for overseas expansion.”
Quantum’s board believes there is “substantial” latent value in the 100 or so projects that Lamda has already completed, and a number that can be readily commercialised through “out-licensing” to third parties.
The firm will use Lamda’s international network to expand the reach of its other business units in overseas markets.
Quantum Pharma debuted on AIM in December 2014 with a £106m IPO. The firm employs around 320 people across its UK sites.
An update accompanying announcement of the acquisition said Quantum’s Colonis business had launched its first licensed product, Aviticol, and had gained a licence for another product to be launched in the second quarter of 2015.