3M Divests Most of Its Drug Delivery Business3M Divests Most of Its Drug Delivery Business
December 17, 2019
American firm 3M Company is divesting most of its drug delivery business in a $650 million deal with an affiliate of Altaris Capital Partners LLC, a recent company press release announced. Following the close of the deal, 3M will retain a 17% noncontrolling interest in the new entity.
“The drug delivery business is a leading provider of transdermal and inhalation delivery technologies,” 3M’s chairman and chief executive officer, Michael Roman, said in a statement. “This transaction will allow us to focus more resources on our core health care business as well as retain a share in the value of the drug delivery business as it grows over the coming years.”
3M’s drug delivery business produces pharmaceutical products with inhalation, transdermal, microneedle, and conventional drug delivery technologies. Assets that are involved in the transaction generate global sales of $380 million each year. In addition to the noncontrolling interest, 3M will also hold on to its transdermal drug delivery components business.
The companies expect the deal to close during the first half of next year following the completion of regulatory approvals and other closing conditions. 900 3M employees are slated to join the new company.
From 2017 to 2024, the global transdermal drug delivery market is expected to grow by a CAGR of 7.5%, with North America projected to lead revenue during the period, according to a recent market outlook report.
For more news headlines, articles, and equipment reviews, visit our Equipment Zones
More Powder & Bulk Solids articles:
CDMO Symbiosis Expands Biologics Manufacturing Capacity
CSB Releases Report on MRR Pressure Vessel Explosions
BASF Inaugurates New Antioxidants Synthesis Plant
You May Also Like