TopGum Industries Ltd. has completed its acquisition of P&L Developments LLC’s U.S. gummy manufacturing operations, marking a significant step in its expansion into the pharmaceutical gummy market. The deal, initially announced in January, establishes a U.S.-based manufacturing platform for TopGum and strengthens its position in the growing market for gummy-format healthcare products.
TopGum’s acquisition provides it with a state-of-the-art facility built to FDA pharmaceutical standards, capable of producing both dietary supplements and pharmaceutical gummies. The facility, one of the few globally with such capabilities, positions TopGum to meet the increasing demand for enjoyable dosage forms in the U.S. consumer health market.
“This is a strategic transaction that gives TopGum a unique foothold in the emerging pharmaceutical gummy market and reinforces its positioning as an innovative, leading company in its field,” said Eyal Shohat, Chief Executive Officer of TopGum. “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.”
The acquisition addresses two major trends in the U.S. health market: the shift toward gummy dosage forms and the demand for U.S.-based supply chains. It also creates expansion opportunities, as the facility’s infrastructure can double production capacity without significant additional investment. TopGum now operates manufacturing platforms in Israel, Canada, and the U.S., enabling it to serve leading healthcare and retail partners.
For P&L Developments, the transaction redeploys a specialized manufacturing asset to a category-focused operator while preserving its ability to bring high-quality gummy products to market. The deal also secures access to TopGum’s global portfolio and development pipeline, allowing PLD to meet growing retailer demand for gummy formats.
Strategic partnership and market outlook
As part of the deal, TopGum and PLD have entered into a long-term partnership to commercialize TopGum’s gummy portfolio under store-brand labels for leading U.S. retailers. PLD will leverage its retail relationships and packaging operations to bring these products to market.
Evan Singer, President of P&L Development, commented, “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 acquired operation includes a development pipeline for dietary supplements and pharmaceutical gummies, with several products nearing commercial launch. TopGum is also advancing products under the FDA’s 505(b)(2) pathway, targeting launches in 2027 and 2028. Additionally, the company is evaluating certification under Australia’s Therapeutic Goods Administration to access new markets.
Transaction terms and financial outlook
The acquisition was funded by TopGum’s existing resources, including $10 million in cash and 1,893,060 shares valued at $8 million. Up to 4,022,751 additional shares, valued at $17 million, will be issued upon achieving commercial and regulatory milestones. On a fully diluted basis, PLD will hold approximately four percent of TopGum’s equity.
TopGum expects 2026 to be a transition year, with revenue from the acquired operation in the low single-digit millions and a negative EBITDA contribution of $2 to $3 million. The company anticipates full earnings potential in subsequent years.
Founded in 2004, TopGum is a global leader in gummy dietary supplements, with facilities in Israel, Canada, and the U.S. P&L Developments, a U.S.-based pharmaceutical and consumer healthcare CDMO, operates FDA-registered facilities across the country and serves major U.S. retail chains.
Editor’s note: We utilized an internal Informa AI tool, designed to assist with content creation, to help draft this article based on a primary source—a press release. The content was thoroughly fact-checked and reviewed by our editorial team to ensure it adheres to our ethical and accuracy standards, including factual reliability and editorial integrity. Leveraging this tool enabled us to produce additional high-quality content to better serve the dietary supplement industry with timely and relevant insights.