Procaps Group Acquires 1st U.S.-Based Softgel Production Facility and Pharmaceutical R&D Center to Expand Global Growth of its iCDMO Business Unit
January 12 2022 - 8:31AM
Business Wire
Top 5 Global Producer of Pharmaceutical
Softgels to Expand Production Capacity in the United States by 1.8
Billion Capsules Annually
USFDA Approved 86,000 Square Foot Facility
Located in West Palm Beach, Florida to Accelerate Time-To-Market
Response & Lower Cost of Distribution to the North American
Market
Procaps Group (NASDAQ: PROC), a leading integrated international
healthcare and pharmaceutical company, today announced the closing
of an asset purchase agreement to acquire an 86,000 sq. ft.
pharmaceutical production facility located in West Palm Beach,
Florida with production capacity of approximately 1.8 billion
capsules per year for its iCDMO (integrated Contract and
Manufacturing Organization) business unit, and is expected to
increase Procaps Group’s product development capabilities by more
than 70% .
The soft gelatin capsule (“Softgel”) is a solid dosage form
composed of two gelatin films that contain semisolid or liquid
active pharmaceutical ingredients (APIs) protected by an external,
hermetically sealed cover. Softgels are designed to deliver high
precision dosage by achieving homogeneity of ingredients. The
Softgel capsules are well recognized in the supplement, OTC, and
the prescription market for improving patient adherence to the drug
and therapy by facilitating swallowing due to the texture of its
shell.
The pharmaceutical production facility was purchased from
Strides Pharma, Inc., a U.S. subsidiary of the Indian-based
pharmaceutical corporation, the Strides Group. The facility is
USFDA (United States Food and Drug Administration) approved and, in
addition to the manufacturing capabilities, it offers development
and analytical testing capacities, which we believe will become an
important alternative for new pharmaceutical and OTC developments
in highly regulated markets worldwide. Core assets included in the
acquisition were several Softgel encapsulation lines, new critical
support systems, automated packaging line capabilities, as well as
development facilities including pilot and scale up capabilities.
Procaps Group expects the facility to begin operations in May of
2022.
“This acquisition is an important milestone for our strategy of
bringing soft gelatine-based innovations to all corners of the
globe both via integrated CDMO solutions and our own developments,”
said Ruben Minski, CEO of Procaps Group. “This facility has a
strong production track record and audit history and we believe it
will become a Global Center of pharmaceutical excellence. We are
privileged to welcome the current facility employees into the
Procaps Group family. Operationally and strategically, this
expansion is an important investment for us. We believe the
estimated increase in production capacities will provide us the
opportunity to deliver a wider product array as we move even closer
to our customers in the North American markets and to implement our
ambitious global growth plans.
“This significant, long-term investment in both our
manufacturing and R&D infrastructure underscores the commitment
of our corporation to deliver better health and nutrition to the
world through Innovative oral delivery systems. We believe our
expansion to the U.S. will provide us a wider capability of
delivering our pharmaceutical products to our strategic partners
and ensuring the continued quality of their most valued asset,
their brands.
Minski added, “We believe our new facility in Florida is
strategically positioned to improve our supply chain efficiency and
the cost of distribution for our products in terms of proximity to
customers, especially for the NAFTA area, the largest
pharmaceutical market worldwide. We anticipate that new product
innovation will also be fueled by our proximity and the ability for
frequent dialogue with new customers. Moreover, we believe we can
now offer a new and flexible alternative to our CDMO customers in
North America and provide them better access to our innovative
technologies for oral delivery systems. With this facility having
the capability of complying with the regulatory standards of
several regulators worldwide, we expect new European and Australian
customers will also show interest in having this facility develop
and supply products and solutions for their own markets.”
Please visit the Softigel by Procaps Virtual Booth to learn,
interact and explore the Company’s softgel and gummy innovative
technologies or visit Unigel by Procaps to learn more.
About Procaps Group
Procaps Group is a developer of pharmaceutical and nutraceutical
solutions, medicines, and hospital supplies that reach more than 50
countries in all five continents. Procaps has a direct presence in
13 countries in Latin America and more than 4,500 collaborators
working under a sustainable model. Procaps develops, manufactures,
and markets over-the-counter (“OTC”) pharmaceutical products and
prescription pharmaceutical drugs (“Rx”), nutritional supplements
and high-potency clinical solutions. For more information, visit
www.procapsgroup.com or Procaps Group’s investor relations website
investor.procapsgroup.com.
Forward-Looking Statements
This press release contains “forward-looking statements.”
Forward looking statements may be identified by the use of words
such as “forecast,” “intend,” “seek,” “target,” “anticipate,”
“believe,” “expect,” “estimate,” “plan,” “outlook,” and “project”
and other similar expressions that predict or indicate future
events or trends or that are not statements of historical matters.
Such forward-looking statements include estimated production
capacity of the acquired facility; expectations related to the
facility’s ability to accelerate time-to-market response, lower
cost of distribution to the North American market and improving
supply chain efficiency; expectations related to the acquired
facility commencing operations in May of 2022; expectations
regarding Procaps Group’s global growth plans; expectations related
to product development capabilities and new product innovations;
and expected growth in customer base in North America, Europe and
Australia. Such forward-looking statements with respect to
revenues, earnings, performance, strategies, synergies, prospects,
and other aspects of the businesses of Procaps Group are based on
current expectations that are subject to risks and uncertainties. A
number of factors could cause actual results or outcomes to differ
materially from those indicated by such forward-looking statements.
These statements involve risks, uncertainties and other factors
that may cause actual results, levels of activity, performance or
achievements to be materially different from the information
expressed or implied by these forward-looking statements. Although
we believe that we have a reasonable basis for each forward-looking
statement contained in this press release, we caution you that
these statements are based on a combination of facts and factors
currently known by us and our projections of the future, about
which we cannot be certain. We cannot assure you that the
forward-looking statements in this press release will prove to be
accurate. These forward-looking statements are subject to a number
of significant risks and uncertainties that could cause actual
results to differ materially from expected results, including,
among others, the ability to recognize the anticipated benefits of
the acquisition of the facility , the impact of COVID-19 on Procaps
Group’s business, costs related to the acquisition and integration
of the facility, changes in applicable laws or regulations, the
possibility that Procaps Group may be adversely affected by other
economic, business, and/or competitive factors, and other risks and
uncertainties, including those included under the header “Risk
Factors” in the Form F-1 Registration Statement filed with the U.S.
Securities and Exchange Commission (“SEC”), as well as Procaps
Group’s other filings with the SEC. Should one or more of these
risks or uncertainties materialize, or should any of our
assumptions prove incorrect, actual results may vary in material
respects from those projected in these forward-looking statements.
We undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required under applicable securities
laws. Accordingly, you should not put undue reliance on these
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220112005433/en/
Investor Contact: Chris Tyson Executive Vice President MZ
North America Direct: 949-491-8235 PROC@mzgroup.us
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