Apr 04, 2018

Fagron Strengthens Strategic Position in USA Through Highly Complementary Acquisition of Humco

Fagron announces today the acquisition of Humco, a leading developer, manufacturer and supplier of patented delivery vehicles and branded pharmaceutical products to over 45,000 pharmacies in the USA. The acquisition price for Humco amounts to US$ 47.5 million (approximately € 38.6 million) in cash, with the potential for a performance linked earn-out of up to US$ 22.5 million (approximately € 18.3 million) in cash over a two-year period. The total consideration for the acquisition of Humco is thus capped at US$ 70.0 million (approximately € 56.9 million). The transaction includes all technologies, scientific data, patents and trademarks, as well as the production facility of Humco in Texas (USA).

Humco, founded in 1872 as Hutchison Medicine Company, realized a turnover of approximately US$ 32 million (approximately € 26 million) and an EBITDA-margin in line with that of the activities of Fagron North-America in 2017. The company is focused on developing, manufacturing and commercializing innovative patented delivery vehicles (including topical and transdermal creams, syrups and suspensions) and branded pharmaceutical products that are cash-paid by the customer (not reimbursed). In 2016, Humco added a limited portfolio of active pharmaceutical ingredients to its product offer. Humco serves over 45,000 pharmacies in the USA, mainly indirectly through pharmacy chains and wholesalers. Humco is located in Austin (Texas, USA) and has a state-of-the-art FDA registered, cGMP compliant production facility in Texarkana (Texas, USA). All 140 employees from Humco join Fagron, bringing expertise to innovate and serve an expanded customer base worldwide.

"I am pleased to welcome Humco to Fagron Group. Their high-quality portfolio of branded pharmaceutical products and widely used patented delivery vehicles that are supplied to a broad customer base of pharmacy chains and wholesalers in the USA is highly complementary to our extensive range of active pharmaceutical ingredients. Humco is an excellent strategic fit for Fagron. By combining the two companies, we create a strong competitive company with significant scale, strengthening our market position in the USA. Our global footprint and leading market positions in Europe and South-America will enable us to successfully launch and grow the innovative branded pharmaceutical products and delivery vehicles of Humco outside the USA. We look forward to welcome the Humco employees to the Fagron family," said Rafael Padilla, Fagron's CEO.

Following the transaction, Gregory Pulido, Humco's Chairman and CEO, will transition to the role of Executive Chairman while Andrew Pulido, Humco's current President, Global Pharmaceuticals, will assume the sole role of President at Humco.

"We are delighted and proud to become part of the Fagron Group. Being part of a large global organization and a world leader in pharmaceutical compounding creates a more capable and dynamic company for our customers and employees. We complement each other, selling in adjacent markets with very little customer overlap, enabling a significant number of growth opportunities. While we introduce our successful and unique patented delivery vehicles and branded pharmaceutical products internationally, our customers can benefit from the excellent range of more than 1,600 high quality active pharmaceutical ingredients of Fagron," said Gregory Pulido.

Andrew Pulido said, "I am honored to become Humco's President at such an exciting time. The joint activities of Fagron and Humco are extremely well positioned to capitalize on growth opportunities in the USA and around the world. I am confident that our expertise, creativity and dedication will enable us to offer increased value to our customers, suppliers and employees as well as to further extend Fagron's leadership in the market for personalized medication."

Market Buzz

May 02, 2019 Transaction Data Systems (TDS) Delivers Smarter Approach to Claim Reconciliation
Apr 22, 2019 Visante healthcare consulting firm announces Judi Jacobi, PharmD, to join consul...
Apr 17, 2019 As an aging population demands more efficient pharmacy solutions, the founder of...
Apr 17, 2019 Adam Wallace Named Chief Technology Officer at Transaction Data Systems (TDS)
Apr 15, 2019 PharmaLink to Exhibit at 2019 Asembia Specialty Pharmacy Summit
Apr 04, 2019 Transaction Data Systems (TDS) Announces Acquisition of Pharm Assess, Inc.
Apr 01, 2019 Chad Collins Named President of Akro-Mils and Jamco Products
Mar 22, 2019 Tutela Welcomes Octapharma Plasma
Mar 18, 2019 Verity Solutions Recognized as Category Leader for 340B Management Systems in 20...
Mar 07, 2019 Stormont Vail Health Partners with Omnicell to Enhance Medication Management Str...
Mar 06, 2019 Rebranding Focuses ALG Mission - Combining Our Best to Bring You Our Best
Mar 04, 2019 RXinsider Celebrates 20 Years, 1999 - 2019
Feb 28, 2019 Lupin launches Generic Ranolazine ER Tablets in U.S.
Feb 18, 2019 QS/1® Offers Compliance Packaging Label Solution
Feb 15, 2019 QS/1 Partnership Offers Compliant Patient Communications
Feb 14, 2019 RXinsider is Proud to Welcome our Newest Partners!
Feb 12, 2019 Albertsons Companies Pharmacies Adopt TemperPack's ClimaCell™ Packaging
Feb 07, 2019 Fagron Launches New Brand Identity and Purpose
Feb 07, 2019 Medicine-On-Time has come together with Clinical Support Services, a leader in M...
Feb 04, 2019 Letco Med and Ananda Professional Partner to Bring CBD and Education to Compound...
Jan 30, 2019 Texas Children’s Hospital Expands Partnership with Omnicell
Jan 16, 2019 Helmer Scientific Launches the First Professional Medical-grade Refrigerators
Jan 15, 2019 The Compliance Team™ celebrates 25 years of accreditation transformation
Jan 11, 2019 CORE Higher Education Group partners with Pharmacists Mutual
Jan 10, 2019 SCA Pharma Awarded National Outsourced I.V. Admixture Services Agreement with Pr...
Jan 08, 2019 Tutela Welcomes the Center for Organ Recovery and Education
Dec 13, 2018 PharmaLink Launches Updated Website
Dec 11, 2018 Jorgenson Issues Annual List of Major Challenges Facing Hospital and Health Syst...
Nov 29, 2018 BD Expands Integrated Medication Management to Help Tackle Hospital Drug Diversi...
Nov 13, 2018 Akro-Mils 2019 Catalog

RXinsider Product Overview Videos