Cambrex Considers Strategic Alternatives

Cambrex Corporation (East Rutherford, NJ, www.cambrex.com), a contract manufacturer and provider of life sciences products and services, has retained Bear Sterns & Co Inc. as an advisor as it considers strategic alternatives for the company. 

Cambrex also will take an impairment charge of $85-$100 million for the fourth quarter of 2005, mainly stemming from weakness in its biopharma segment. The company says its biopharma segment will not break even in the fourth quarter 2005 because of the anticipated goodwill impairment, the timing of shipments, and a one-time charge related to an investment for a large pharma client whose potential new project has been cancelled, according to a company release.

James A. Mack, current chairman of Cambrex, has been named president and CEO. He has been chairman since 1999 and has been serving as acting president and CEO since January 2006 following the departure of John R. Leone. Leone had joined Cambrex in August 2004 for purposes of leading the company’s entry into the specialty therapeutics market. Cambrex decided in January to discontinue its acquisition program into specialty therapeutics.

Cambrex Agrees to Buy Cutanogen

Separately, Cambrex Bio Science Walkersville Inc., a subsidiary of Cambrex Corporation has agreed to purchase Cutanogen Corporation (Cincinnati, Ohio, www.cutanogen.com), a privately held biotechnology company focused on products that treat patients with severe burns. The purchase price includes $1.5 million at closing and additional purchase price payments of as much as $4.8 million, subject to achieving certain regulatory and commercial milestones.

Cutanogen’s lead product is "PermaDerm" cultured skin. Cambrex anticipates applying for a humanitarian device exemption with the US Food and Drug Administration by mid-2006 and to begin a pivotal trail for the product by the end of 2006.