Contract Research & Services
Contract Research

Thermo Fisher to buy pharmaceutical CDMO Patheon for $7.2bn

PBR Staff Writer Published 16 May 2017

Thermo Fisher Scientific has agreed to acquire Patheon, a provider of drug development and delivery solutions to the pharmaceutical and biopharma sectors, for around $7.2bn.

The company will start a tender offer to purchase all of the issued and outstanding shares of Patheon for $35.00 per share in cash.

Patheon is a pharmaceutical contract development and manufacturing organization (CDMO), which provides specialized services for potent and controlled substances, aseptic filling and lyophilization, complex formulations, solubility enhancement and difficult to manufacture active pharmaceutical ingredients (APIs).

The company operates integrated facilities for pharma and biotech firms across North America, Europe, Asia and Australia.

The company has 11 facilities for commercial-scale finished dosage forms, four for API process development and manufacturing, four for biologics, and ten for pharmaceutical development.

With around 9,000 professionals across the globe, Patheon had reported revenue of around $1.9bn in 2016.

Subject to the satisfaction of customary closing conditions, the deal is expected to complete by the end of this year.

Once the deal concludes, Thermo Fisher will include the acquired business in its laboratory products and services segment.

Thermo Fisher Scientific president and CEO Marc Casper said: “Patheon’s development and manufacturing capabilities are an excellent complement to our industry-leading offering for the biopharma market.

“Our combined capabilities will enhance our unique value proposition for these customers, create significant value for our shareholders and further accelerate our company’s growth.”

Patheon CEO James Mullen said: “We are confident that our combined offerings and Thermo Fisher’s proven track record of disciplined M&A and successful integrations will take our business to the next level.”

Image: Thermo Fisher Scientific headquarters in Waltham. Photo: courtesy of Coolcaesar.