DPx buyout of specialty API maker IRIX is a wrap

Less than a month after announcing its plans to buy specialty API maker IRIX Pharmaceuticals in Florence, SC, CDMO Patheon has wrapped up the acquisition, another in a series since forming DPx Holdings in 2013 with plans to roll up smaller players into a global operation.

Durham, NC-based Patheon announced yesterday that it had completed the buyout of IRIX, which specializes in making difficult to manufacture (API). IRIX has manufacturing facilities in Florence and Greenville, SC with capabilities to develop and manufacture APIs for high-potency drugs and schedule 1 through 4 controlled substances. The companies did not disclose the purchase price.

Patheon is part of DPx Holdings, which was created through the $2.6 billion merger of Patheon and Netherlands-based DSM Pharmaceutical Products. 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 DPx was created, it had 23 drug development and manufacturing sites in North America, Europe, Latin America and Australia, but JLL co-founder Paul Levy said he believed the contract industry was fragmented and ripe for consolidation and the DPx intended to buy up more operators. Former Biogen CEO James Mullen is CEO of the company.

DPx has been on an expansion binge from day one to broaden its services. Last year it picked up Gallus BioPharmaceuticals to beef up its biologics operations. Gallus has plants in St. Louis, MO, and Princeton, NJ. They were folded into Patheon's biologics group, which has existing sites in Groningen, the Netherlands, and Brisbane, Australia. Patheon says its biologics operations now employ more than 550 people. Shortly after closing that deal, Patheon announced a $159 million expansion of its manufacturing facility in Greenville, NC, with plans to add nearly 500 employees there over 5 years. The company already has about 1,000 employees at the facility.

- here's the release

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CMO born from $2.6 billion merger comes on the scene as DPx 
Patheon's deal for DSM would transform it into the second largest COM in the world 
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