BARRANQUILLA, Colombia – (COMMERCIAL THREAD) – Procaps Group (NASDAQ: PROC), one of the world’s leading integrated healthcare and pharmaceutical companies, today announced that it has entered into an asset purchase agreement to acquire a pharmaceutical production facility of 86,000 square feet located in West Palm Beach, Florida, with a 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 development capabilities of Procaps group products by more than 70%.
The soft gelatin capsule (“Softgel”) is a solid dosage form composed of two gelatin films that contain semi-solid or liquid active pharmaceutical ingredients (APIs) protected by a hermetically sealed outer shell. The capsules are designed to provide high precision dosing by achieving consistency of ingredients. Softgel capsules are well recognized in the supplement, OTC and prescription market for improving patient adherence to medication and therapy by making swallowing easier due to its shell texture.
The pharmaceutical production facility was purchased from Strides Pharma, Inc., a US subsidiary of the India-based pharmaceutical company, the Strides Group. The facility is USFDA (United States Food and Drug Administration) approved and, in addition to manufacturing capabilities, it offers development and analytical testing capabilities, which we believe will become an important alternative for retailers. new pharmaceutical and OTC developments in highly regulated markets around the world. The main 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 upgrade capabilities. ladder. The Procaps group expects the facility to begin operations in May 2022.
“This acquisition is an important step in our strategy of bringing soft gelatin-based innovations to all corners of the world both through integrated CDMO solutions and our own developments ”, said Ruben Minski, CEO of Procaps Group. “This facility has a strong production and auditing track record and we believe it will become a global center of pharmaceutical excellence. We have the privilege of welcoming the current employees of the facilities into the Procaps Group family. Operationally and strategically, this expansion is a significant investment for us. We believe that the estimated increase in production capacities will provide us with the opportunity to offer a broader product line as we move even closer to our customers in North American markets and to implement our ambitious growth plans. global.
“This significant, long-term investment in our manufacturing and R&D infrastructure underscores our company’s commitment to delivering better health and nutrition to the world through innovative oral delivery systems. We believe that our expansion into the United States will provide us with a greater ability to deliver our pharmaceuticals to our strategic partners and ensure the continued quality of their most valuable asset, their brands.
Minski added: “We believe that our new plant in Florida is strategically positioned to improve the efficiency of our supply chain and the cost of distributing our products in terms of proximity to customers, particularly for the NAFTA area, the largest pharmaceutical market. in the world. We anticipate that new product innovation will also be fueled by our proximity and our ability to engage frequently with new customers. In addition, we believe we can now offer a new flexible alternative to our CDMO customers in North America and offer them better access to our innovative technologies for oral delivery systems. With this facility having the ability to comply with the regulatory standards of several regulators around the world, we anticipate that new European and Australian customers will also show an interest in this facility developing and delivering products and solutions for their own markets. ”
Please visit the Softigel by Procaps virtual booth to learn, interact and explore the company’s innovative softgel and gummy technologies or visit Unigel by Procaps to learn more.
About the Procaps Group
The Procaps group is a developer of pharmaceutical and nutraceutical solutions, drugs and hospital supplies serving more than 50 countries on five continents. Procaps has a direct presence in 13 Latin American countries and more than 4,500 employees working according to a sustainable model. Procaps develops, manufactures and markets over-the-counter (“OTC”) pharmaceuticals and prescription pharmaceuticals (“Rx”), nutritional supplements and high potency clinical solutions. For more information, visit www.procapsgroup.com or the Procaps Group investor relations website, investisseur.procapsgroup.com.
This press release contains “forward-looking statements”. Forward-looking statements can be identified by the use of words such as “expect”, “intend”, “seek”, “target”, “anticipate”, “believe”, “expect”, “estimate”. “,” Plan “,” “outlook” and “project” and other similar expressions which predict or indicate future events or trends or which are not statements of historical matters. These forward-looking statements include the estimated production capacity of the acquired facility; expectations related to the facility’s ability to accelerate time-to-market response, reduce distribution costs in the North American market, and improve supply chain efficiency; expectations related to the acquired facility starting operations in May 2022; expectations regarding the Procaps Group’s global growth plans; expectations related to product development capabilities and new product innovations; and the expected growth of the customer base in North America, Europe and Australia. These forward-looking statements regarding revenues, earnings, performance, strategies, synergies, prospects and other aspects of the business of the Procaps Group are based on current expectations subject to risks and uncertainties. A number of factors could cause actual results to differ materially from those indicated by these forward-looking statements. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from the information expressed or implied by such forward-looking statements. While we believe we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that such statements are based on a combination of facts and factors currently known to us and on our projections for the future, accordingly. of which we cannot be certain. We cannot assure you that any forward-looking statements contained in this press release will prove to be correct. 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 expected benefits of acquiring the company. ‘installation, the impact of COVID -19 on the activity of the Procaps Group, the costs related to the acquisition and integration of the installation, changes in applicable laws or regulations, the possibility that the Procaps Group is adversely affected by other economic, business and / or competitive factors, and other risks and uncertainties, including those included under the heading “Risk Factors” in the registration statement of Form F-1 filed with the United States Securities and Exchange Commission (“SEC”), as well as other documents filed by Procaps Group with the SEC. If one or more of these risks or uncertainties materialize, or if any of our assumptions turn out to be incorrect, actual results could differ in material respects from those projected in these forward-looking statements. We assume no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Therefore, you should not place undue reliance on these statements.