East Midlands medicines manufacturer Morningside Pharmaceuticals has been sold to Hampshire-based Aspire Pharma.
The Morningside group, which was founded by Leicestershire entrepreneur Nik Kotecha OBE, is based in Loughborough and has been making and supplying generic medicines to the UK and globally for three decades.
The company exports to more than 120 countries and is one of the UK’s leading suppliers of medicines to international charities, non-governmental organisations and aid agencies.
Accounts for Morningside Pharmaceuticals Ltd for 2021 showed a turnover of £76.5 million, up more than £13 million on the previous year. It made pre-tax profits of almost £18 million.
The deal also includes Morningside Healthcare – a £24 million sister business involved in the research, development and licensing of new products – and Morningside Healthcare (India). No details of the financial terms of the sale have been released.
Petersfield-based Aspire is an established medicines manufacturer whose investors include its founder Graham Fraser-Pye; Juno Pharmaceuticals, a global pharma specialist spanning four continents; and H.I.G. Capital, a global alternative investment firm with more than $50 billion of equity capital under management.
In recent years Mr Kotecha has been dedicating time to his work as chairman of the Randal Charitable Foundation, helping socially disadvantaged children in the UK and around the world.
He also works closely with trade bodies such as the Department of International Trade, East Midlands Chamber of Commerce, the Leicester and Leicestershire Enterprise Partnership, the Midlands Engine Council and CBI East Midlands, and is a Deputy Lieutenant of Leicestershire.
In July Morningside announced that it had appointed new chief executive Tim Brady as Dr Kotecha’s replacement to lead it into the next chapter of its growth plans.
Mr Brady said: “Aspire’s acquisition of Morningside is validation of the long-term growth plan that the shareholders and management of Morningside Pharmaceuticals and Morningside Healthcare have developed over the past 30 years.
“The combined company will benefit across several areas, including the realisation of enhanced business development capabilities with over 120 complementary mid and late-stage programs.”
Aspire Pharma chief executive Richard Condon said they were excited to welcome the Morningside team to the Aspire family.
He said: “This is a transformative opportunity for both companies to expand and enhance our market position as a result of both companies highly complementary product portfolios.
“The combination will create one of the largest and fastest growing UK pharma companies and see further accelerated growth potential in our current and future product portfolio, in the UK and internationally.
“Our commitment remains with our team, patients, and our partners in the NHS and beyond, to ensure a smooth integration of businesses.”
Morningside’s generic medicines are delivered twice daily to the NHS, hospitals and pharmacies in the UK.
A spokesman said the respective organisations will continue to operate as standalone businesses until further integration and transition announcements are made.
