Gummy supplement specialist TopGum Industries (TopGum) has announced the completion of its acquisition of OTC pharmaceuticals company P&L Developments' (PLD) gummy manufacturing operations.
TopGum said in its statement that the purchase gives the company a "unique foothold in the emerging pharmaceutical gummy market," handing it a US-based manufacturing facility purpose-built to FDA pharmaceutical standards.
The facility's existing infrastructure also supports more than a doubling of production capacity through additional lines, without significant incremental capital investment from the company.
PLD and TopGum will now commence a strategic commercial partnership under which PLD will commercialise and distribute TopGum-manufactured products to US retailers under store-brand labels.
The pair said that the combination of operations will address two major structural shifts in the US consumer health market: the accelerating migration of both VMS and pharmaceutical products into gummy and other enjoyable dosage forms and the rising retailer and brand demand for US-based supply chains.
TopGum estimates that the pharmaceutical gummy market will follow a similar accelerated growth trajectory to the dietary supplements market, where the gummy format became the leading dosage form.
Eyal Shohat, CEO at TopGum, said: "The transaction positions TopGum as a unique player with an advanced global manufacturing platform, built to serve the largest dietary supplement brands in the US with local manufacturing."
"Partnering with PLD, one of the leading generic pharmaceutical companies in the US, gives us access to leading US retail chains and accelerates our growth in this market. The fact that a significant portion of the consideration is contingent and share-based reflects PLD's confidence in TopGum's strategy, capabilities and long-term growth trajectory."
The pharmaceutical gummy category is in its earliest innings and we believe it will follow the same arc the dietary supplement market followed over the past 15 years, when the gummy format became the dominant one.
"We view the completion of the transaction as a significant milestone in TopGum's growth trajectory and we are at the beginning of a new chapter in the company's accelerated expansion as we continue our journey to become a leading player in healthcare products built on enjoyable, advanced delivery systems."
Evan Singer, President, P&L Development, added: "At PLD, we see gummies as an emerging platform for delivering healthcare across vitamins, minerals and supplements (VMS) and pharmaceutical products, which customers and consumers are increasingly asking for."
"This transaction gives us the ability to serve that demand at an even more aggressive speed and scale, by partnering with a world-class gummy manufacturing & development company."
The deal structure itself is creative and delivers on two priorities at once: putting a purpose-built, FDA-compliant gummy manufacturing platform into the hands of a global category leader who will scale it, while securing PLD privileged access to TopGum's portfolio and development pipeline for our US customers.
"We expect to be bringing TopGum products to our retail partners in the coming months."
The acquired operation has a development pipeline containing several products currently targeted to launch in 2027 and 2028 under the partner's brands, with TopGum serving as the exclusive manufacturer.
TopGum added that it is also evaluating facility certification under additional regulatory regimes, including Australia's Therapeutic Goods Administration (TGA), which would open access to Australian and adjacent markets.