MedPharm, Ltd. and Tergus Pharma Merger Forms Topical and Transdermal CDMO Leader

GUILDFORD, United Kingdom and DURHAM, N.C., July 8, 2024 /PRNewswire/ -- MedPharm, a global topical and transdermal Contract Development and Manufacturing Organization (CDMO) and Ampersand Capital Partners portfolio company, announced today a merger with Tergus Pharma, a Great Point Partners portfolio company. The combined organization will operate under the MedPharm name, establishing a leading, end-to-end CDMO with robust scientific, clinical trial manufacturing and commercial production capabilities. As part of this transaction, Tergus Pharma CEO Michael Kane has been appointed CEO of MedPharm while Patrick Walsh will continue to serve as Executive Chairman of MedPharm.

The merged business is well-positioned as a global leader in delivering a full suite of drug development and manufacturing services to innovators of all sizes focused on advancing topical and transepithelial pharmaceuticals. The strategic combination of Tergus and MedPharm's capabilities enables commercial production and serialization to existing formulation development, in vitro testing and clinical manufacturing within one integrated organization. Expanded capabilities will also include the development and manufacture of hormone-based and highly potent drugs at the Company's GMP manufacturing facility in Durham, NC.

Michael Kane commented, "This strategic partnership is an exciting opportunity to deliver extensive pharmaceutical product development resources fueled by a robust team of scientific experts while leveraging our cutting-edge topical GMP facility to seamlessly meet our customers' commercial production needs. With locations in both the United Kingdom and the United States, we are well positioned to provide exceptional support to our existing and prospective pharmaceutical clients."

MedPharm Executive Chairman Patrick Walsh added "Pharma clients have been seeking a reliable, integrated service offering for their ophthalmic, topical and transdermal development and manufacturing projects. This merger creates an immediate option with two organizations already well-positioned in the industry."

Tergus lead investor Great Point Partners will retain a significant minority ownership stake in the newly combined MedPharm, while private equity firms Ampersand Capital Partners and Bourne Partners Strategic Capital assume majority ownership.

About MedPharm
MedPharm is an end-to-end contract service provider of topical and transepithelial products supporting early phase research, formulation development and in vitro testing services in addition to both clinical and commercial manufacturing. For more than 25 years, MedPharm has specialized in reducing risk through its unique, industry-leading in vitro testing and research biology models. Well-established as the global leader in product development for dermal/transdermal, lung and nasal, mucosal membrane, ungual, otic and ophthalmic delivery, MedPharm has locations in the United Kingdom and United States, including a new 97,000 sq. ft. state-of-the-art facility in Durham, NC and is recognized globally for its regulatory and technical expertise. For more information, visit: medpharm.com or follow us on LinkedIn.

About Ampersand Capital Partners
Founded in 1988, Ampersand Capital Partners is a middle market private equity firm with $3 billion of assets under management dedicated to growth-oriented investments in the healthcare sector. With offices in Boston, MA and Amsterdam, Netherlands, Ampersand leverages a unique blend of private equity and operating experience to build value and drive long-term performance alongside its portfolio company management teams. Ampersand has helped build numerous market-leading companies across each of the firm's core healthcare sectors. For additional information, visit ampersandcapital.com or follow us on LinkedIn.

About Bourne Partners Strategic Capital ("BPSC")
Headquartered in Charlotte, N.C., Bourne Partners Strategic Capital is a private equity and growth equity investment firm focused exclusively on the pharmaceutical, pharma services and consumer healthcare sectors (10 current portfolio companies).  As owners and operators with over 20 years of experience, BPSC has investment, strategic and operational experience in companies ranging from $5M to $3B in equity value and seeks to align and partner with management teams and other owners in these sectors to grow their business. BPSC is a related company of Bourne Partners, which offers investment banking and advisory services in the same key focus areas  For more information, please visit Bourne Partners Strategic Capital.

About Great Point Partners
Great Point Partners, founded in 2003 and based in Greenwich, CT, manages over $1.9B of capital in its private funds and public life sciences equity strategy (BioMedical Value Fund). The private equity funds invest across all sectors of the health care industry with a particular emphasis on biopharmaceutical services and supplies, alternate site care, medical device contract manufacturing and information technology enabled businesses. The firm pursues a proactive and proprietary approach to sourcing investments and tuck-in acquisitions for its portfolio companies. For additional information, visit gppfunds.com or follow us on LinkedIn.

SOURCE MedPharm