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news.HealthSport, a fully integrated formulator, developer and manufacturer of bi-layer, oral thin film products that deliver drug and dietary supplement ingredients through buccal absorption, has signed a merger agreement with Supplemental Manufacturing and Ingredients (SMI Manufacturing) to create a fully integrated technology-based manufacturing, marketing and sales organisation.
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HealthSport and SMI Manufacturing said that the merger is expected to result in a company into developing and producing oral thin film for the delivery of dietary supplements and pharmaceutical actives, providing partners and customers with viable alternatives to traditional drug delivery technologies.
SMI Manufacturing has had a good relationship with HealthSport through an existing agreement whereby SMI Manufacturing has a license to manufacture HealthSport’s products.
SMI Manufacturing has also committed to building a film strip manufacturing facility adjacent to its current facility in Tempe, Arizona and has invested approximately $5m into HealthSport.
AS per the terms of the merger agreement, unanimously approved by the boards of directors of both companies, SMI shareowners are expected to own approximately 84% and HealthSport shareowners 16% of the merged company.
HealthSport and SMI Manufacturing added that as per the merger agreement Mr Taheri is expected to remain as the CEO of HealthSport and Rob Davidson is expected to stay on as the president of HealthSport.
The companies have created an integration team to be led by Rick Gean, currently chief financial officer of SMI Manufacturing, and Tom Beckett, chief operating officer of HealthSport.
The new HealthSport is expected to be structured around three operating units that build on the companies’ similar go-to-market and product development structures that provide clear customer and competitive focus.
Kevin Taheri, CEO of HealthSport, said: “The combination of HealthSport and SMI creates an opportunity for the two companies by joining forces to leverage each company’s core competencies. HealthSport provides a background in R&D, and SMI in the manufacturing of health related products.
“We feel the new company will be in a position to commercialise the platform technology by offering the pharmaceutical industry a new drug delivery method that can be used with a wide variety of medicines.”
Ferrel Raskin, CEO of SMI Manufacturing, said: “We’re helped by the fact that both companies have been pursuing similar organisational structures and marketing and sales strategies. We are committed to achieving our goals and advancing our position in the marketplace.”
Mr Taheri, said: “In addition to the clear benefits of combining these two organisations and product families, we can create substantial shareowner value through cost structure improvements and access to new growth opportunities within the pharmaceutical industry.”