AmerisourceBergen Corporation has acquired Brecon Pharmaceuticals Limited, a privately-held, United Kingdom-based provider of contract packaging and clinical trial materials (CTM) services for pharmaceutical manufacturers for approximately $49 million (approximately 28 million pounds) in cash. The acquisition also includes a contingent payment of up to approximately $19 million (approximately 11 million pounds) based on Brecon Pharmaceuticals achieving specific earnings targets in calendar year 2006. The purchase of Brecon is expected to be neutral to AmerisourceBergen's fiscal 2006 earnings.
"The addition of Brecon Pharmaceuticals enhances our contract packaging business and provides the added capability to offer pharmaceutical manufacturers contract packaging and CTM services in new geographies. This purchase also supports AmerisourceBergen's strategy of focusing on servicing the manufacturers and healthcare providers in the pharmaceutical supply channel," said R. David Yost, AmerisourceBergen chief executive officer.
Brecon, which will become a part of AmerisourceBergen Packaging Group, has approximately 280 employees, more than 90,000 square feet of packaging space and revenues in calendar year 2005 of approximately $22 million (approximately 13 million pounds).
Brecon Pharmaceuticals is one of the leading contract packaging and CTM companies in the United Kingdom, providing packaging services for pharmaceuticals intended for sale by pharmaceutical manufacturers throughout Europe and Asia.
AmerisourceBergen is one of the world's largest pharmaceutical services companies serving the United States, Canada and selected global markets. Servicing both pharmaceutical manufacturers and healthcare providers in the pharmaceutical supply channel, the company provides drug distribution and related services designed to reduce costs and improve patient outcomes. AmerisourceBergen's service solutions range from pharmacy automation and pharmaceutical packaging to pharmacy services for skilled nursing and assisted living facilities, reimbursement and pharmaceutical consulting services, and physician education.