Patheon and its parent, DPx, have been on a buying and expansion binge since the company was created last year, grabbing up smaller CMOs to build out both capabilities and capacity. With an IPO in the works, more deals may be coming but the CDMO has ended up with operations that don't fit its model and is shedding those along the way, including two deals this week.
Patheon, snapped up by private equity in a $2.6 billion merger last year, is already plotting a path back to the public markets, filing for a $100 million U.S. IPO.
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.
Patheon has been on an M&A blitz, buying up specialty manufacturers that can help it broaden its network as it muscles up as a global CDMO. But the North Carolina-based company is unafraid to shed assets that no longer fit that blueprint and so is selling a plant in Mexico to over-the-counter king Perrigo.
Just days after saying it was buying contract manufacturer IRIX Pharmaceuticals to get its expertise in making difficult APIs, North Carolina contract development and manufacturing company Patheon has snapped up yet another competitor, this one a specialist in bioavailability.
Contract drug developer Patheon, a year removed from a $2.6 billion merger, is expanding its manufacturing footprint with another acquisition, buying up a South Carolina specialist.
Patheon, whose parent DPx holdings has it on an expansion binge, will pick up a U.S.-based specialty small molecule API maker. This deal comes after Patheon bought its first U.S. biologics plants last year and started on a major build-out at its North Carolina facility.
Patheon, a contract manufacturer of drugs for pharmaceutical companies, plans to add 488 jobs over the next 5 years at its Greenville, NC, facility, and could eventually bring in more than $6.3 million in incentives offered by the state under a job development program.
A U.K. plant that the former Patheon was ready to bail on two years ago will now get a $300 million shot in the arm. It and client Pacira will partner on manufacturing suites to provide additional capacity to produce Pacira's analgesic, Exparel.
Pacira Pharmaceuticals is counting on an expanded indication and swell in demand for its surgical pain treatment, and the biotech has inked a deal with contract manufacturer Patheon to collaborate on production in a multiyear agreement.