Quantum Pharma Plc Acquires Lamda companies for €9.7 million
Quantum Pharma Plc (AIM: QP.), a growing manufacturer, supplier and service provider to the niche pharmaceutical and healthcare sector, is pleased to announce the acquisition of 100 per cent of the share capital of Lamda (UK) Limited, Lamda Laboratories SA and Lamda Pharmaceuticals SA, collectively 'Lamda' (the "Acquisition") for a total consideration of €9.7 million.
Lamda is a pharmaceutical development and licensing business with customers in the UK, Germany, Italy, Scandinavia and Greece. Lamda provide a fully outsourced research and development service to companies looking to license medicinal products from its state of the art development laboratories near Athens, Greece.
Lamda has a proven track record of product development and licensing, having completed in excess of 100 projects during which Lamda has accumulated both IP and dossiers which the Board believe can be commercialised with the support of the Group. The first product that the Group has identified will be submitted to the MHRA for assessment within the next month.
Lamda has filed 11 patent applications, including six patents granted in Greece, three pending in Greece, and two pending in Europe and other countries.
The Lamda entities generated combined revenues of €2.1 million and losses of €0.14 million for their respective 2014 financial periods. The consideration due in respect of the acquisition of Lamda totals €9.7million, including €4.7 million payable on completion and €5.0 million deferred, to be paid in two equal instalments 12 and 24 months after completion of the acquisition. The consideration will be paid out of the Group's cash reserves.
The acquisition of Lamda has a strong strategic rationale for a number of reasons:
- Lamda has a strong pipeline of products in development including a number of niche pharmaceutical products to be filed with European Regulators shortly. This is complementary as it further strengthens the Group's pipeline of products which is already in place within Colonis.
- The Board believe there is substantial latent value in the 100 plus projects that Lamda has already completed and that a number of these novel products can be readily commercialised via out-licensing to selected third parties in a number of territories.
- Lamda's international network will be used as a platform to enable the Group's other business units to penetrate overseas markets.
- The activities of Lamda are complementary to those of the Group, as it provides vertical integration through the addition of in-house product development capability. Once integrated Lamda is expected to deliver synergies both financially and operationally.
Lamda significantly increases the Group's current product development portfolio by both number of products and therapeutic area.
Since the Group's admission to AIM, Colonis has made good progress, launching its first licensed product, Aviticol, as well as having a further licence granted on a product which is awaiting market launch in Q2 2015. A further six products are currently in assessment with the MHRA. In addition, several new products have been added to the short-term pipeline.
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."