Fagron Expands Global Presence with Key Acquisitions

Growth Through Strategic Acquisitions

Fagron, a forefront player in the pharmaceutical compounding industry, has officially signed two significant acquisitions aimed at fortifying its market stance. The company has acquired CareFirst Specialty Pharmacy in North America and Injeplast in Brazil, marking a pivotal step in its ongoing commitment to enhance its global footprint.

Details of the Acquisitions

These acquisitions come with an estimated combined enterprise value of around €30 million, and are fully financed utilizing Fagron’s own resources, pending the usual regulatory clearances. Both CareFirst and Injeplast currently operate with an EBITDA margin that slightly exceeds Fagron's existing group margin, indicating their robust business frameworks.

CareFirst Specialty Pharmacy

CareFirst, based in New Jersey, USA, specializes in the health and wellness sector as a 503A pharmaceutical compounder. This specialty pharmacy focuses on providing non-sterile medications tailored to patient-specific prescriptions, with an emphasis on hormone replacement therapy and dermatology treatment options. With a yearly revenue in the mid-single-digit millions, the addition of CareFirst significantly amplifies Fagron's influence in North America's prevention and lifestyle healthcare markets.

Injeplast's Role in Latin America

Based in São Paulo, Brazil, Injeplast is a GMP-certified manufacturer of packaging solutions with an impressive, vertically integrated operation. This company, generating low double-digit millions in annual revenue, brings exceptional packaging solutions and streamlined manufacturing processes to the table. The acquisition supports Fagron’s Essentials strategy by expanding its product offerings and diversifying its customer base throughout Latin America. The capabilities of Injeplast will also bolster Fagron's operational support across various regions, fostering enhanced global operations.

Conclusion of EuroOTC Acquisition

Adding to the excitement, Fagron has successfully finalized the EuroOTC acquisition announced during the trading update last quarter. This acquisition further solidifies Fagron's reputation as a dedicated leader in the pharmaceutical compounding realm and enhances its operational capacity.

Leadership Insights

Rafael Padilla, CEO of Fagron, expressed optimism regarding these acquisitions: "We are incredibly pleased to announce these two acquisitions, which reflect our disciplined and strategic growth approach. The acquisition of CareFirst allows us to meet the increasing demand in the prevention and lifestyle segments, reinforcing our leadership in North America. Similarly, the addition of Injeplast will strengthen our market positioning in Latin America by broadening our product portfolio and expanding our customer base. Both businesses align with Fagron’s Group margin, and we expect to integrate them over the next 18 to 24 months."

Financial Calendar

Looking ahead, Fagron has outlined its financial calendar, detailing key dates for upcoming reports and meetings. The full-year results for 2024 will be presented in February, followed by trading updates throughout the subsequent months. Shareholders will have the opportunity to engage in the annual meeting in May.

About Fagron

Fagron is renowned globally for its expertise in pharmaceutical compounding, committed to providing personalized medicine solutions to hospitals, pharmacies, clinics, and patients across over 30 countries. With its registered office in Nazareth and listed on Euronext Brussels and Euronext Amsterdam under the ticker symbol ‘FAGR’, Fagron continues to thrive, driven by a robust operational backbone managed by its Dutch entity headquartered in Rotterdam.

Frequently Asked Questions

What are the newly acquired companies by Fagron?

Fagron recently acquired CareFirst Specialty Pharmacy in North America and Injeplast in Brazil.

How do these acquisitions benefit Fagron?

The acquisitions enhance Fagron’s market positioning by expanding its product offerings and customer base in North America and Latin America.

What is the estimated enterprise value of the acquisitions?

The combined enterprise value of the acquisitions is approximately €30 million.

Who is the CEO of Fagron?

Rafael Padilla serves as the CEO of Fagron.

Where is Fagron headquartered?

Fagron is headquartered in Nazareth, Belgium, with operational management based in Rotterdam, the Netherlands.

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