CDMO Patheon positions itself for $625M IPO next week


Patheon, an Amsterdam-based contract drug developer, said in a regulatory filing it plans to raise $625 million in a public offering that analysts forecast would give the company a market value of $2.9 billion.

In its SEC filing, Patheon said it will offer 30.5 million shares at a price range of $19 to $22. About 16% of the shares will go to insiders.

The company recorded sales of $1.8 billion for the 2015-2016 financial year ended in April.


Simplify and Accelerate Drug R&D With the MarkLogic Data Hub Service for Pharma R&D

Researchers are often unable to access the information they need. And, even when data does get consolidated, researchers find it difficult to sift through it all and make sense of it in order to confidently draw the right conclusions and share the right results. Discover how to quickly and easily find, synthesize, and share information—accelerating and improving R&D.

Under the helm of James Mullen, the former CEO of Biogen ($BIIB), Patheon chalked up a string of deals starting with a $255 million purchase of softgel specialist Banner Pharmacaps in 2012. In August 2014, the company acquired Gallus BioPharmaceuticals for an undisclosed sum and picked up its first U.S. biologicals facility in the process.

In March, Patheon inked a deal with Amgen ($AMGN), which is set to see the CDMO provide "flexible manufacturing solutions" for the biopharma.

The contractor employs nearly 9,000 people across 11 countries.

Rumors of Patheon’s intention to go public began to circulate last year, but at a level of about $100 million versus the $625 million target.

The company is looking to launch next week on the NYSE under the ticker "PTHN." In a statement, Patheon said it will use the cash to repay all of its outstanding $550 million of Senior PIK toggle notes, pay-related fees, expenses and accrued interest.

Patheon “will not receive any proceeds from the sale of shares by the selling shareholders,” the company said in its filing.

- check out the SEC filing

Related Article:
Amgen strikes deal with Patheon for 'flexible manufacturing capacity'


Suggested Articles

Higher operating costs were behind a 17% slide in pretax profits last year at Allergan’s Mayo, Ireland, facility that produces Botox.

After a global scare over Zantac contamination, generic metformin could be next in line as regulators test for possible carcinogen contamination.

PCI Pharma Services debuts expansion of its plant in Rockford, Illinois.