Catalent to Acquire Pharmatek, Adding Expanded Drug Development Services and Spray Drying Technology
13 September 2016 - 1:30PM
Business Wire
Acquisition of West Coast Development &
Clinical Manufacturing Specialist Will Add Extensive Formulation
Development Capabilities and Expands Bioavailability Enhancement
Solutions
Catalent, Inc. (NYSE:CTLT), the leading global provider of
advanced delivery technologies and development solutions for drugs,
biologics and consumer health products, today announced an
agreement for Catalent, through its wholly owned subsidiary,
Catalent Pharma Solutions, Inc., to acquire Pharmatek Laboratories,
Inc., a West Coast, U.S.-based specialist in drug development and
clinical manufacturing. The acquisition will add extensive
early-phase drug development capabilities from discovery to clinic,
bring spray drying into Catalent’s portfolio of drug formulation
and delivery technologies, and expand Catalent’s capability for
handling highly potent compounds. The addition of spray drying will
also provide Catalent customers with a comprehensive suite of
bioavailability enhancement solutions, while complementing and
expanding Catalent’s OptiForm® Solution Suite platform, a
science-driven parallel screening approach to identify the optimal
formulation pathway for poorly soluble compounds. No financial
details have been disclosed.
Founded in 1999, Pharmatek provides dosage form development and
clinical-scale cGMP manufacturing of oral, injectable and topical
products for more than 100 customers globally. At its San Diego
facility, Pharmatek offers a fully integrated drug development
platform, with discovery formulation screening for lead selection
and optimization, comprehensive formulation development and
analytical services, and finished dose form manufacturing for
clinical supply. Additional services include first-in-man
strategies, solutions for poorly soluble compounds, controlled
release formulations, and specialized facilities and controls for
potent compound handling.
“Catalent continues to expand its industry-leading drug
development and delivery technologies to help its pharmaceutical
partners to fully unlock the potential of their molecules and
provide better treatments for patients,” said Barry Littlejohns,
President of Catalent’s Drug Delivery Solutions business. He added,
“Combined with Catalent’s existing technologies and network, the
addition of Pharmatek’s well-established scientific expertise and
spray dry capabilities will create an unparalleled drug development
platform, while the San Diego facility will expand our West Coast
presence and provides additional access to the Asia-Pacific
markets.”
Pharmatek’s site in San Diego is a cGMP facility that employs
nearly 200 people, whose experience and expertise will complement
Catalent’s existing development and analytical services teams,
based at multiple locations globally. Pharmatek provides
development and analytical services for more than 120 molecules
annually, and its facility comprises 68,000 square feet of
laboratory, manufacturing and support space, with 2 analytical
labs, 2 formulation labs, 4 engineering rooms and 9 Certified ISO
Class 8 manufacturing suites. The site also features 18,000 square
feet of laboratory, manufacturing and support space dedicated to
development and manufacturing of highly-potent compounds.
The transaction is subject to customary closing conditions and
is expected to close in the next few weeks. Catalent intends to pay
for this all-cash acquisition through a combination of existing
cash and borrowings under Catalent's existing revolving credit
facility. The acquisition will not change Catalent's fiscal 2017
financial guidance. The purchase price will not be disclosed as it
is not material to Catalent’s financial results.
About Catalent
Catalent is the leading global provider of advanced delivery
technologies and development solutions for drugs, biologics and
consumer health products. With over 80 years serving the industry,
Catalent has proven expertise in bringing more customer products to
market faster, enhancing product performance and ensuring reliable
clinical and commercial product supply. Catalent employs
approximately 9,200 people, including over 1,400 scientists, at 33
facilities across 5 continents, and in fiscal 2016 generated $1.85
billion in annual revenue. Catalent is headquartered in Somerset,
N.J. For more information, visit www.catalent.com
More products. Better treatments. Reliably supplied.™
Forward-Looking Statements
This press release contains both historical and forward-looking
statements. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements generally can be identified by the
use of statements that include phrases such as “believe,” “expect,”
“anticipate”, “intend”, “estimate”, “plan”, “project”, “foresee”,
“likely”, “may”, “will”, “would” or other words or phrases with
similar meanings. Similarly, statements that describe our
objectives, plans or goals are, or may be, forward-looking
statements. These statements are based on current expectations of
future events. If underlying assumptions prove inaccurate or
unknown risks or uncertainties materialize, actual results could
vary materially from Catalent’s expectations and projections. Some
of the factors that could cause actual results to differ include,
but are not limited to, the following: any failure to close the
agreed acquisition of Pharmatek, due to the failure of a condition
to closing that is not or cannot be waived, or otherwise; the
failure of the Pharmatek business to perform as expected following
the closing, due to underlying conditions of the business not
perceived during pre-signing diligence activities, changes in the
management or operation of the business wrought by the acquisition,
any failure to integrate adequately the business and operations of
Pharmatek into the larger Catalent network, or any other reason;
general industry conditions and competition; product or other
liability risk inherent in the design, development, manufacture and
marketing of our offerings; inability to enhance our existing or
introduce new technology or services in a timely manner; economic
conditions, such as interest rate and currency exchange rate
fluctuations; technological advances and patents attained by
competitors; and our substantial debt and debt service requirements
that restrict our operating and financial flexibility and impose
significant interest and financial costs. For a more detailed
discussion of these and other factors, see the information under
the caption “Risk Factors” in the Catalent, Inc. Annual Report on
Form 10-K for the fiscal year ended June 30, 2016, filed with the
Securities and Exchange Commission. All forward-looking statements
speak only as of the date of this release or as of the date they
are made, and Catalent does not undertake to update any
forward-looking statements as a result of new information or future
events or developments unless required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20160913005882/en/
Investor:Thomas Castellano, (732)
537-6325investors@catalent.comorMedia:Chris Halling, +44 (0)7580
041073chris.halling@catalent.comorRichard Kerns, +44 (0) 161 728
5880richard@nepr.eu
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