Patheon invests in 4 sites ahead of buyout by Thermo Fisher

This small molecule API plant in Florence, South Carolina, that Patheon bought from Roche is one of four sites the CDMO is expanding with about $45 million in investments.

Patheon is awaiting finalization of a $7.2 billion deal that will make it a part of Thermo Fisher Scientific, but in the meantime the CDMO is moving forward with expansion plans at sites that stretch from the West Coast of the U.S. to Italy.

The Durham, North Carolina-based Patheon said late last week that it will invest $45 million at sites in Bend, Oregon; Florence, South Carolina; Greenville, North Carolina and Monza, Italy.

It is adding an additional manufacturing suite, clinical scale scale spray-dried dispersion (SDD) services, and analytical labs in Bend Bend and commercial spray drying capabilities at the small molecule API plant in Florence that it recently bought from Roche.

RELATED: Roche to sell U.S. plant to Patheon, saving about 200 jobs

Improvements at its Greenville packaging facility include a new 4,800-square-foot suite that will come online this fall and includes a filling and packaging line with serialization capabilities.  

In Italy, the company has added a commercial sterile product manufacturing facility that can handle both lyo and liquid formulations of small- or large-molecule drugs. Patheon also plans to expand its sterile product Pharmaceutical Development Services (PDS) at the Monza facility, a project it says should be ready in mid-2019.

RELATED: Patheon, built on a series of acquisitions, is snapped up by Thermo Fisher in $7.2B deal

In May, Waltham, Massachusetts-based Thermo Fisher announced it would pay $35 a share for Patheon, a sum that amounts to about $5.2 billion, and assume another $2 billion in debt. Thermo Fisher, which provides services and equipment to the biopharma industry, likes the idea of moving into the high-growth contract manufacturing business—a market which it estimated to be worth about $40 billion.

Patheon, which went public in 2016, had revenues of about $1.9 billion in its last fiscal year. That compares to the $18 billion in sales reported by Thermo Fisher racked up in 2016. The two expect to get the deal wrapped up by the end of the year.