Evonik recently signed an agreement to acquire the LACTEL® medical biodegradable polymer business under DURECT for USD 15 million. Taking into account certain special closing conditions, the transaction is expected to be completed in the first quarter of 2021. The acquisition will involve 15 employees of DURECT in Birmingham, Alabama.
"The acquisition of the LACTEL® business will not only contribute to the innovative growth of the pharmaceutical and health business, but will also further consolidate Yingchuang's position as the world's leading pharmaceutical contract development and manufacturing service provider (CDMO) in drug delivery solutions." Evonik Nutrition Said Johann-Caspar Gammelin, head of the consumer chemicals business unit. This transaction is an important step in the strategic development of Evonik's Nutrition and Consumer Chemicals business unit. LACTEL® business is very suitable for some fast-growing markets, such as advanced drug delivery, biomaterials for tissue engineering, and implantable 3D printed medical devices.
"It is a great honor to work with the passionate and talented LACTEL® team. We believe that with abundant resources and the pursuit of excellence, Evonik will help the LACTEL® product line and its team members to achieve greater development in the future." DURECT Said James E. Brown, President and CEO. Evonik's medical and health business line has a global business network and 12 laboratories that can provide professional formulation, application and regulatory advice, which will help LACTEL® existing and new customers to shorten the time to market.
"By integrating the LACTEL® business and Evonik's market-leading integrated services of functional pharmaceutical excipients, biomaterials and CDMO, we will consolidate our position as the preferred development partner and solution provider for pharmaceutical and medical device customers." Thomas Riermeier, head of the medical and health business line, said, “As LACTEL® and its team members join the Evonik family, we will provide customers with a more feature-rich platform and other value-added services.”
"Despite the travel restrictions and other challenges brought about by the COVID-19 pandemic, we were able to negotiate very efficiently through video conferencing, and finally determined the terms of the acquisition." said Cornelis van den Muyzenberg, vice president of business support and strategic projects for the medical and health business line "We believe that this successful experience not only highlights the cultural synergy between Evonik and DURECT, but also shows that the entire industry is accelerating its digital transformation."
In addition to being widely used as functional pharmaceutical excipients to control the release of parenteral drugs, poly(lactide-co-glycolide) (PLG or PLGA) polymers can also be used in production for orthopedics, cardiovascular and wound healing Bioabsorbable implantable medical devices for other applications. RESOMER® and LACTEL® are the two most highly recognized standardized and customized PLGA polymer brands in the market.