Client: CordenPharma
CordenPharma is a full-service CDMO (Contract Development and Manufacturing Organisation) for the global market, supporting biotechnology and pharmaceutical innovators in developing complex modalities throughout their drug development cycle. Through the bundled expertise of its teams in its globally consolidated network of facilities, CordenPharma offers tailored outsourcing services covering the entire supply chain – from early clinical development to commercialization.
With scientific expertise and partnership at its core, CordenPharma provides its customers with valuable end-to-end services with a strategic focus on peptides, oligonucleotides, custom lipid excipients, lipid nanoparticles, sterile injectable products, and extensive small molecule production.
The CordenPharma Group comprises 12 sites in Europe and the USA. In the 2022 financial year, the company generated revenue of 870 million euros and employed over 3,000 people.
Carve-out Profile
- Client: CordenPharma International GmbH
- Seller: International Chemical Investors Group (ICIG)
- Investor: ASTORG
- Transaction value: Approximately 3 billion euros
- Size: Approx. 3,000 employees, ~870m€ revenue
- Industry: Pharmaceuticals & Biotechnology
- Headquarters: Plankstadt, Germany
- Location: 12 sites in Europe & USA
Initial Situation and Objectives
Following the acquisition of CordenPharma by private equity investor Astorg in August 2022, we were able to prevail against numerous competitors in an intensive selection process and convince CordenPharma that we were the suitable consulting partner in the field of IT carve-out management.
The goal was to separate CordenPharma from its previous owner ICIG (International Chemicals Investors Group) within the agreed TSA term and transition it into an independent standalone operation.
In October 2022, we received the mandate to create an IT carve-out concept, which was subsequently used as the basis for the entire IT carve-out.
Challenge
Initially, the available timeframe from kick-off was one of the biggest and most exciting challenges.
Due to the existing depth of integration into ICIG, we had to consider the entire spectrum of IT for the carve-out.
Additionally, at the turn of the year 2022/2023, three of the twelve sites affected by the carve-out were in a PMI (Post Merger Integration) of a previous acquisition – this further increased the complexity of the project.
As a full-service CDMO, CordenPharma is subject to regulation by the FDA (Food and Drug Administration). To meet the corresponding regulations, we had to adhere to GxP quality requirements at all times and during all separation activities.
The largely heterogeneous IT infrastructure, site-specific qualification and validation requirements, as well as the more than six different separation and operation providers with a total of over 70 project staff made efficient, perfected carve-out management essential.
“Thanks to the excellent carve-out management by digatus, we managed to significantly reduce the TSA duration, saving over 1 million euros, and complete the carve-out ahead of schedule.“
Dirk Sütterlin
VP, Group Head IT
Approach
Concept
In October 2022, we received the mandate to create a carve-out concept, which was approved by CordenPharma and ICIG at the end of January 2023.
As part of the carve-out concept, we analyzed and evaluated core components such as ERP, non-ERP, infrastructure, and security regarding their current state.
For the conception of the target state, we considered customer and industry-specific requirements as well as economic criteria, standardization, and the required separation speed to achieve the timeline for the standalone goal.
Provider Selection
Starting February 2023, we supported CordenPharma, based on the developed concept, in the search for new technical separation and operation providers for ERP and infrastructure.
Using objective evaluation criteria, taking into account industry requirements and based on future needs, we were ultimately able to find the ideal providers using a “best of breed” approach.
Carve-out Management
During the separation activities between April 2023 and January 2024, we had to manage a total of six providers and over 70 employees within the carve-out management team.
Thoughtful risk management, a special focus on GxP, as well as a closely coordinated approach with all stakeholders were crucial for the project’s success and allowed us to keep quality, time, and costs within the planned framework.
Roll-Out Management
In the fourth quarter of 2023, a majority of the site migrations were carried out. We supported the global branches during the rollout with over 20 employees at 6 locations, thereby ensuring reliable adherence to the tight timeline.
Customer Benefits Conclusion
Through the fundamental conception, targeted support in provider selection, and continuous management at all levels, CordenPharma was able to be carved out and transferred to standalone operations earlier than planned.
More than three months of TSA runtime were saved, with a value of over 1 million euros. Ensuring optimal customer benefit was always our highest priority.
Our excellent project structure enabled a clear distribution of tasks and responsibilities, ensuring efficiency and transparency throughout the entire process. The consistent project management ensured that processes were aligned with the specific needs of the new medium-sized business. This tailored approach helped to make the transition seamless for CordenPharma and to extract the optimal added value from the collaboration.
Robert Mair
With over 17 years of professional experience in the IT industry, Robert Mair has developed comprehensive expertise across a wide range of functions and sectors. His profound knowledge in managing international and national projects, as well as leading hybrid teams, gives him a deep understanding of steering and successfully completing challenging projects in time-critical customer situations. In his role as Principal at digatus, he primarily contributes his expertise in the areas of IT Mergers & Acquisitions and IT Transformation.
