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 $1.8 billion for the 2015-2016 financial year ended in April.
Under the helm of James Mullen, the former CEO of Biogen ($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