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HEALTHCARE M&A AND VALUATION
NEWS & INSIGHTS

Pharma Services CDMO Multiples: Societal CDMO to be Acquired by CoreRx (~11.8x EBITDA)

Societal CDMO, Inc. (Nasdaq: SCTL), a contract development and manufacturing organization (CDMO) dedicated to solving complex formulation and manufacturing challenges primarily in small molecule therapeutic development, today announced that it has entered into a definitive agreement to be acquired by CoreRx, Inc. (“CoreRx”). The deal is for $1.10/share, a whopping 139% premium to where Societal CDMO traded just a day prior ($0.46/share).


CDMO EBITDA Multiples


Societal CDMO's guidance for FY 2023 as of 3Q was for revenue within the range of $92m to $94m and EBITDA within the range of $11.5m to $13m. Using the mid-points, the deal works out to 1.6x revenue and 11.8x EBITDA; inline with other smaller CDMO deals.


Societal CDMO Acquired by CoreRx
Pharma CDMO EBITDA Multiples

Pharmaceutical Services M&A Deal Volumes


The deal comes amid declining CDMO M&A announcements despite strong growth trends for the pharmaceutical services industry as a whole, primarily driven by increasing CRO and pharma consulting firm deal announcements.



Pharma Services M&A Up, CDMO Down
Pharma Services M&A Volume Trends

Other CDMO Deals


Read Scope Research's take on other CDMO M&A transactions (both pharma and device CDMO) :








About Scope Research


The Scope Research Healthcare M&A Valuation Database currently has financial details for 136 pharmaceutical services (CRO, CDMO, consulting, and transportation) deals going back to 2010, 112 of which include reported EBITDA multiples. The pharma services data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.


Don't hesitate to reach out to Will Hamilton at will@scoperesearch.co with questions about your specific situation.




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