US-based Colorcon has signed an agreement to purchase the Kollicoat IR Coating Systems product line from Germany-based BASF.
With the deal, Colorcon aims to expand its pharmaceutical film coating product line and improve its position in the sector of fully formulated film coating systems.
Colorcon also expects to bolster its current activities with PVA-based pigmented, ready-to-use film coatings, for use on immediate release forms of pharmaceuticals and dietary supplements.
The deal will be subjected to a review by the Brazilian competition authorities.
Colorcon coatings general manager Kelly Boyer said: "This sale enables both companies to focus on their core competencies, and further strengthens our existing cooperation."
Once completed, the company will serve Kollicoat IR Coating Systems' existing customers from its production facilities worldwide.
The merged entity is expected to be benefited from BASF's polymer expertise and Colorcon's formulation and application knowledge.
BASF global segment management pharma solutions vice president Frank Stein said: "Customers will benefit from both the exceptional functional performance of the products as well as from Colorcon's worldwide unique, customised services.
"BASF will focus on developing and promoting innovative film coating polymers, including Kollicoat IR.
"The transfer of Kollicoat IR Coating Systems does not affect BASF's Kollicoat IR polymer business."
In 2014, Colorcon and BASF announced their cooperation in using immediate release coating polymer Kollicoat IR for Colorcon's fully formulated ready-to-use coatings.
Kollicoat IR is a flexible alcohol / polyethylene glycol graft copolymer that helps produce instant-release coatings for solid dosage forms, as well as binding, pore-forming and drug-layering applications.