Bioseparations company NuSep [ASX: NSP] has reached a binding agreement to acquire NxGen Pharmaceuticals for $25 million.

Pending shareholder approval, NuSep will acquire all of NxGen in exchange for 294 million NuSep shares valued at 8.5c each.

This represents 87.5 per cent of NuSep's expanded capital and 10 times NxGen's net profit forecast for this financial year.

NxGen is a custom pharmaceuticals manufacturer and formulator, with products including an erectile dysfunction nasal spray it makes for a medical clinic.