Active pharmaceutical ingredient (API) supplier PharmaZell, and Novasep, a contract development and manufacturing organization (CDMO) focused on complex small molecules and ADCs, are merging following negotiations initiated in September 2021. This deal creates a technology driven, leading CDMO and API manufacturer.

Novasep’s assets, capabilities, experience and expertise are complementary to those of PharmaZell. Combining the two businesses will create a global company with a footprint in Europe, the U.S. and India. It will provide an industry leading, highly diversified and differentiated CDMO platform and API manufacturing, relying on an innovative and differentiating array of technologies.

In addition, the combination of these two groups will allow the new one to reach a critical size to support customers in the pharmaceutical and biotechnology sectors across the entire drug life cycle, while guaranteeing proximity and quality of service to deliver appropriate therapies for the benefit of patients. The combined business will generate nearly €500 million of revenues and employ more than 2,000 employees across ten production and R&D sites, with 7 in Europe, 2 in India and 1 in the U.S.
 
“Today is a very important step on our journey to better support our customers and the patients they serve,” said Sylke Hassel, former CEO of PharmaZell and CEO of the new group. “This merger is a significant opportunity to further improve our offering, providing a broader set of technologies, a global manufacturing footprint and an end-to-end lifecycle management.”

Michel Spagnol, former CEO of Novasep who will join the board of directors said, “I am delighted to be joining the board of directors where I will contribute to the strategic direction of the new company. I have great confidence that the group will become a major player thanks to the complementarity of its offer and the combination of talents.”