LAB International to buy PharmaForm

Canadian drug development firm LAB International, which is focused on developing therapies for the inhalation and pain markets, says that it has signed a definitive purchase agreement to acquire Texan contract service provider PharmaForm. The company added that the deal will see it purchase the outstanding membership interests in the privately-held group.

LAB said that the transaction, which is expected to close within the next two weeks, will cost around $7.5 million in cash, with a further $4.4 million being paid in shares on completion. The deal also stipulates that the sellers will be eligible for additional payment in LAB shares upon the completion of certain milestones in PharmaForm's drug development programs, specifically, on the initiation of clinical assessment.

Halvor Jaeger, chief executive of the Montreal-based group, said that the company anticipates the rapid advancement of PharmaForm's products into late-stage development, adding that several were "high potential." Further financial details were not disclosed.