A NORTH-EAST medical firm has bought a rival in a near £13m deal as it continues to expand.

Quantum Pharma, in Burnopfield, near Stanley, County Durham, has taken on NuPharm Group.

Bosses have spent an initial £9.34m to secure the North Wales company, and will pay up to £4m more in performance-related arrangements.

Quantum, a market leader in supplying unlicensed medicines to retail and wholesale pharmacy, says the deal will allow the group to make more of its own lines, reducing third party arrangements, and invest in new equipment to increase production.

The firm also says the enlarged business will introduce batch manufacturing and licensed product making, allow the company to enter new markets while reducing costs, with Quantum a previous customer of NuPharm.

Known for supplying solid and liquid doses of treatments, known as specials, which are made to meet individual patient needs, NuPharm employs more than 60 people and also manufactures clinical trials products.

The acquisition comes after Quantum, which employs 257 people at Burnopfield, bought Lamda (UK) Limited, Lamda Laboratories SA and Lamda Pharmaceuticals SA, to increase research and development work, and the company told The Northern Echo the NuPharm deal will have no impact on its County Durham site.

Andrew Scaife, Quantum’s chief executive, said it will deliver a raft of benefits.

He said: “This represents an important and exciting milestone for the group as we significantly accelerate our growth plan and strengthen the business for the medium and long-term.

“NuPharm will provide the group with a ready base of additional customers and capabilities, extending from research and development, through to specially-made and batch manufacturing of unlicensed and licensed medicines.

“It will also further enhance our product offering and broaden our range.”

Mr Scaife added the deal will allow Quantum to make higher volumes of specials from the group’s existing collection and take advantage of NuPharm’s patents in foam formulations and sprays, and pending patents on liquid dosage delivery systems.

Alongside its NuPharm announcement, Quantum revealed it has secured new banking facilities with Royal Bank of Scotland and Lloyds Bank, comprising a term loan of £25m and a revolving credit facility of £10m.

Last year, Quantum raised £106m in a flotation, which bosses said was the largest float on the Alternative Investment Market’s (AIM) pharmaceutical and biotechnology sector, and the region’s biggest ever initial public offering on the AIM.