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| Patheon's corporate headquarters, Durham, NC--Courtesy of Patheon |
Patheon, the rapidly expanding CDMO that hooked up with DSM Pharmaceutical Products last year in a $2.6 billion merger, raked in $1.7 billion in revenue in its first fiscal year in operation but reported a $119 million loss. The company reported a loss of $6.1 million more in the three months ended Jan. 31 on revenues of $488 million, but saw its sales expand 86.4% from the $262.2 million in sales it notched in the same period a year ago.
Because it is privately owned, Patheon has not had to disclose its financials before, but made them public Monday in an S-1 filing with the SEC as it prepares to go to the public markets to raise money to pay down debt. While it was indicate the IPO could raise up to $100 million, Renaissance Capital reported it thinks it will run closer to $700 million.
Patheon is part of DPx, which was created last year in the $2.6 billion merger with DSM. DPx is 51% owned by private investment group JLL Partners and 49% by Royal DSM. It owns DPxFine Chemicals and Banner Life Sciences, as well as Patheon. When JLL announced the deal with DSM, it said it saw a lot of upside in consolidating smaller CMOs into an organization with global reach and broad services.
Toward that end, Patheon has made a series of acquisitions since the merger that have done just that. In March it announced two deals, one for Agere Pharmaceuticals, a Bend, OR-based company that helps clients improve the absorption rates of their medications, and one for IRIX Pharmaceuticals to get its expertise in making difficult APIs.
Before that, DPx bought Gallus BioPharmaceuticals to fill out its biologics offerings. Gallus' plants in St. Louis, MO, and Princeton, NJ, were added to sites in Groningen, the Netherlands, and Brisbane, Australia, that DSM had contributed to the company. Patheon also started on a $159 million expansion of its facility in Greenville, NC, last fall, a buildout that it has said will increase its employment there by nearly 50% in 5 years, adding 488 jobs to the roughly 1,000 employees already working at the facility.
In the SEC filing, Durham, NC-based Patheon explained that drug manufacturing accounted for about 60% of its revenues and that geographically it got 56% of its sales in the U.S., 36% in Europe and 2% from Canada.
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