Catalent Pays $950 Million for Cook Pharmica
US drugmaker Catalent has agreed to buy contract development and manufacturing organization (CDMO) Cook Pharmica for $950 million in cash, boosting its position in the fast-growing biologics area.
The deal gives Catalent access to Cook Pharmica’s facility in Bloomington, Indiana, USA, which offers capabilities in biologics development, clinical and commercial cell culture manufacture, formulation, finished-dose manufacturing and packaging.
Biologics currently account for approximately 14% of Catalent’s consolidated revenue but will make up about 21% of the combined group’s pro-forma revenue, the New Jersey-based company said.
The merger is the latest in a consolidating global contract manufacturing industry. Just last month, Swiss fine chemicals and biologics producer Lonza acquired Micro-Macinazione, a contract manufacturer providing micronization of active ingredients for the pharmaceutical and fine chemical industries.
Catalent said it would pay $750 million when the deal completes with the remainder due in four annual instalments. Cook Pharmica’s revenues for its year ending Jun. 30, 2017 were $179 million.
News agency Reuters quoted Wells Fargo analyst Tim Evans as saying the acquisition is “pricey, but important”, as it enables Catalent to beef up previously weak areas of manufacturing active ingredients and final dosage forms of biologic drugs.
John Chiminski, Catalent’s chairman and CEO, said the company plans to invest "aggressively” in the Bloomington facility as well as in its rapidly expanding development and biomanufacturing plant in Madison, Wisconsin, and the rest of its biologics network “to build a true global leader”.
The acquisition is expected to close in the fourth quarter of this year, subject to the usual conditions and regulatory approvals.
