GHA Advises Seikagaku on Its Acquisition of Dalton Pharma Services

February 2020 – Miami, FL

Global Healthcare Advisors, LLC (“GHA”) is pleased to announce the acquisition of Canada’s Dalton Pharma Services (“Dalton”) by Japan’s Seikagaku Corporation (“SKK”).

With the acquisition of Dalton, SKK adds high value-added one-stop contract development and manufacturing (“CDMO”) services, including the manufacturing of chemosynthesis products and active pharmaceutical ingredients (“API”), and API process development for pharmaceutical companies at a time of strong industry growth. Dalton’s services also include the manufacturing of investigational drugs in the development stage and optimization of manufacturing conditions.

As part of the transaction, SKK obtains Dalton’s:

  • Cultivated chemosynthesis technology;
  • Internal knowledge related to the development of drug manufacturing processes; and
  • GMP-certified North American drug manufacturing base.

SKK plans to leverage these additions to begin in-house manufacturing of chemosynthesis products used for research and other purposes, which SKK currently produces by outsourced contract manufacturing.

SKK also plans to transfer the manufacturing of investigational drugs and selected SKK pharmaceutical products to Dalton while expanding its CDMO business and continuing its exceptional service to current clients.

GHA initiated this transaction and advised SKK on its acquisition. Commenting on the transaction, GHA Managing Partner Larry Carter noted:

“This is GHA’s first cross-border deal of 2020, and we expect more such activity this year. The intricacies of this particular transaction required full-team commitment and a strategic vision on behalf of all parties, which we are proud to have brought to fruition. GHA’s efforts were essential in sourcing, negotiating, and managing all phases of the diligence process for this transaction.”

Ken Mizutani, President and CEO of SKK, commented:

“The acquisition of Dalton represents an exciting addition for SKK and positions us well for expansion and continued success in the fast-growing pharmaceutical services industry. The team at GHA was instrumental at all stages of this transaction, and we appreciate their professionalism and diligence.”

About Seikagaku Corporation

Seikagaku Corporation is an R&D-oriented pharmaceutical company that specializes in glycoscience. Since its foundation in 1947, SKK has continuously focused on the possibilities of glycoscience and developed original, beneficial pharmaceutical products and medical devices in the fields of orthopedic disorders and ophthalmic diseases. Under a unique business model that emphasizes R&D and manufacturing without an in-house pharmaceuticals sales division, SKK contributes to healthy and fulfilling lives for people around the world by marketing products globally in collaboration with companies that have built strong reputations in specific countries and product areas.

About Dalton Pharma Services

Dalton Chemical Laboratories, Inc. (dba Dalton Pharma Services) is a leading North American cGMP pharmaceutical organization providing integrated drug discovery, development, and manufacturing services. Dalton is FDA inspected, and Health Canada approved, and brings over 30 years of experience to every project. The company delivers fully integrated solutions with an emphasis on speed, flexibility, and quality. Its integrated services (drug discovery, formulation and process development, custom synthesis, cGMP sterile fill/finish of liquids and powders, cGMP API manufacturing and/or dosage form manufacturing, and Accelerated Stability Testing) all at one location help it to be adaptable, flexible, and cost-effective.

About Global Healthcare Advisors, LLC

Global Healthcare Advisors (GHA) is a boutique investment bank focused exclusively on buy-side acquisition advisory services in the healthcare industry. GHA has extensive experience aiding strategic companies and financial sponsors in executing transactions across a variety of healthcare verticals. Our team combines research with a vast rolodex and extensive M&A experience to provide clients with actionable proprietary deal flow.

For inquiries or more information, please contact Larry Carter, Managing Partner, at (786) 209-2340 or lcarter@ghadvisors.net.