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| Patheon CEO James Mullen |
Patheon's $255 million deal to buy Banner Pharmacaps announced last fall was touted as a move that would position Patheon as a force in softgel manufacturing and international markets. The Canadian company's latest financial results show the deal is paying off as planned.
Patheon's commercial manufacturing business grew 35.4% to $227.8 million in its third quarter, boosted by Banner's business. The company's smaller pharmaceutical development unit grew 7.1% to $37.9 million. Overall, Patheon posted $265.7 million in revenue with Banner contributing $66.4 million. That more than accounted for the year-over-year growth. The company also reported a profit for the second straight quarter, although its $4.3 million in net income came in comparison with the $15.5 million it earned in the same quarter a year ago. The company said higher administrative costs and some integration expenses related to the Banner acquisition played a part in the reduced net.
Patheon picked up four manufacturing facilities around the globe and 1,200 employees with the Banner buyout. Banner is headquartered in High Point, NC, where it has one manufacturing facility. It also has plants in Mexico, Canada, and the Netherlands. The plant in Mexico includes a packaging and warehouse facility.
Patheon last year sold off its clinical packaging business so it could focus on its faster-growing contract manufacturing arm. "The integration of Banner is complete, and our transformation initiatives continue to yield results as we implement operational excellence activities across our global network," CEO James Mullen said in a statement. "Overall, revenue flow across quarters has been more balanced this year, and we are encouraged by this continuing trend."
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