Reckitt Benckiser retained PharmaBioSource, Inc. as its exclusive consultant to identify oral liquids and oral solids manufacturing facilities in the U.S. as potential acquisition targets. Reckitt was seeking to acquire an existing facility to manufacture Mucinex and other over-the-counter pharmaceutical products to meet U.S. market demands. Reckitt had been facing supply chain challenges during the COVID-19 pandemic and struggled to maintain the necessary inventory of its oral liquid and oral solid Mucinex. PharmaBioSource was engaged to identify and profile pharma manufacturing facility acquisition opportunities and assist Reckitt in narrowing down the opportunities that best met its manufacturing capabilities and capacity requirements. PharmaBioSource then approached senior management representatives at the prioritized targets to inquire if an acquisition scenario was possible.

PharmaBioSource prepared a landscape of all of the oral solid and oral liquid manufacturing facilities in the U.S. to provide a list of potential acquisition opportunities for Reckitt. Over 50 targets were identified, and each target was profiled, including location, facility size, manufacturing capabilities and capacities, regulatory status, and workforce availability. Partnering with Reckitt, each target was reviewed to determine which facilities best met Reckitt’s manufacturing capabilities and capacity requirements. We drew on our technical expertise and extensive contacts within the life sciences industry to approach the prioritized targets to engage them in discussions toward potential acquisition opportunities. Ultimately, the Sandoz pharma manufacturing facility in Wilson, NC, was selected as the best acquisition opportunity for Reckitt.

Services provided by the PharmaBioSource team:

• Target identification and profiling
• Prioritized acquisition targets that best met Reckitt’s needs
• Market engagement
• Managed confidentiality agreements
• Attended site visits and meetings with Reckitt and Sandoz management teams
• Supported Reckitt’s due diligence
• Data room review
• Contract document review
• Deal structure and negotiations
• Closing support

PharmaBioSource managed the entire target identification and acquisition process resulting in Reckitt Benckiser’s successful purchase of the Sandoz oral solid dosage manufacturing facility in Wilson, NC. This acquisition allowed Reckitt to avoid a more than $300M investment in a new manufacturing facility and reduced its time to market by more than two years. The acquisition of the Wilson facility also solved a major supply chain issue, allowing Reckitt to meet its U.S. market and inventory requirements for Mucinex.