Canadian compounding pharmacy acquired by multi-sector health care company
Grey Wolf Animal Health Corp recently acquired the Compounding Pharmacy of Manitoba
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Grey Wolf Animal Health Corp, a diversified health care company based in Toronto, Canada, has acquired the Compounding Pharmacy of Manitoba (CPM) for $22.5 million. The acquisition includes associated real estate, pursuant to a Share Purchase Agreement, according to a news release.1
The independent CPM is based in Oakbank, Manitoba. The facility spans 25,000 sq ft and serves independent and corporate-owned pharmacies, as well as veterinarians in Canada. This facility is anticipated to improve Grey Wolf’s capacity for growth in their pharmacy business unit. The acquisition is also expected to diversify the company’s customer mix and expand into the veterinary and human compounding markets.
CPM generated an estimated $6.4 million and approximately $2.5 million in adjusted earnings before interest, taxes, depreciation, and amortization over the 12 months ending September 30, 2024, according to a news release.1 At the time of the agreement, Grey Wolf paid $19.8 million in cash and issued 3,160,112 shares of its stock, valued at $0.8544 per share. The cash payment was funded using Grey Wolf's existing cash reserves and 2 new loans totaling $18.7 million from its current lender. Grey Wolf’s new purchase is “expected to be immediately accretive to revenue.”1
"We believe CPM is complementary to our Trutina acquisition that we completed in 2021 and provides the ability to expand our existing business in both the veterinarian and human compounding pharmacy markets from a new facility near Winnipeg" Angela Cechetto, CEO of Grey Wolf, said in the company news release.1 Trutina is a Canadian compounding pharmacy that formulates medication for veterinary and human patients.2
In 2022, the global market for animal drug compounding was valued at 1.3 billion USD. It is projected to grow at a compound annual growth rate (CAGR) of 8.19% during the forecast period. Contributing factors of its growth include increasing awareness among pet owners of the benefits of compounded medications, causing more pet owners to purchase these personalized medications.3
Demand for compounded medications for companion animals is leading the market growth, with felines contributing a significant portion of that growth. Medicating cats can be difficult, creating a demand for compounded medications in feline medicine that ensures patient compliance during administration while maintaining the human-animal bond.3 According to the FDA, veterinarians in the United States prescribe 6.3 million compounded animal drug prescriptions annually.3
References
- Grey Wolf Animal Health announces the acquisition of the Compounding Pharmacy of Manitoba. News release. Grey World Animal Health Corp. December 2, 2024. Accessed December 5, 2024. https://www.newswire.ca/news-releases/grey-wolf-animal-health-announces-the-acquisition-of-the-compounding-pharmacy-of-manitoba-899223148.html
- Trutina Pharmacy. Trutina Pharmacy. Accessed December 5, 2024. https://www.trutinapharmacy.com/about-us
- Animal Drug Compounding Market Size, Share & Trends Analysis Report By Animal Type (Companion Animals, Livestock Animals), By Product, By Route of Administration, By Dosage Form, By Region, And Segment Forecasts, 2023 – 2030. Grand View Research. Accessed December 5, 2024. https://www.grandviewresearch.com/industry-analysis/animal-drug-compounding-market-report
