Catalent, Inc. (NYSE:CTLT), the leading global provider of
advanced delivery technologies and development solutions for drugs,
biologics and consumer health products, today announced that it has
completed the $1.2 billion acquisition of Paragon Bioservices,
Inc., a leading viral vector development and manufacturing partner
for gene therapies.
With the addition of Paragon’s specialized expertise in
adeno-associated virus (AAV) vectors, the most commonly used vector
to deliver DNA to cells, Catalent is positioned to capitalize on
strong industry tailwinds in the potentially $40 billion
addressable market for gene therapies. Paragon also brings to
Catalent its unique and differentiated scientific, development, and
manufacturing capabilities, which will fundamentally enhance
Catalent’s biologics business and end-to-end integrated
biopharmaceutical solutions for customers.
Paragon recently announced the opening of its new,
state-of-the-art commercial manufacturing center near the
Baltimore-Washington International (BWI) airport, which is equipped
with several 500-liter and 2,000-liter single-use bioreactors for
clinical through commercial material production. The new
large-scale production campus – now combined with a recently leased
second building which will be built out for commercial GMP
manufacturing – has the potential for more than 425,000 square feet
of manufacturing space upon completion.
Paragon has GMP manufacturing projects underway with more than
half of the top 40 leading gene therapy developers worldwide.
Catalent is committed to continuing the resource dedication for
Paragon’s customers and maintaining a flexible and reliable
development and manufacturing partnership for its clients. The
company currently employs over 380 individuals at its two
Baltimore-area sites, all of whom will join the existing Catalent
team of over 11,000 employees.
In connection with the acquisition of Paragon, Catalent Pharma
Solutions, Inc., as borrower, and certain other wholly owned
subsidiaries of Catalent entered into an amendment, dated as of May
17, 2019, to its existing credit agreement with JPMorgan Chase
Bank, N.A., as administrative agent and collateral agent, to
provide for, among other things, $950 million of incremental term
loans and a $350 million increase to its revolving credit facility.
The proceeds of the incremental term loans were used to fund a
portion of the acquisition consideration and for general working
capital purposes, to pay fees, costs and expenses incurred in
connection with the transactions contemplated hereby, for capital
expenditures of Paragon and to prepay a portion of the existing
term loans.
Also in connection with the acquisition of Paragon, Catalent
completed the issuance of $650 million of a new series of
convertible preferred stock to funds affiliated with Leonard Green
& Partners, L.P. Effective as of the closing of the
acquisition, Peter Zippelius, a partner at Leonard Green &
Partners, joined Catalent’s Board of Directors.
About Catalent
Catalent is the leading global diversified provider of advanced
delivery technologies and development solutions for drugs,
biologics and consumer health products. With more than 85 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 over 11,000 people, including over 1,800
scientists, at more than 30 facilities across five continents, and
in fiscal year 2018 generated approximately $2.5 billion in annual
revenue. Catalent is headquartered in Somerset, New Jersey. For
more information, visit www.catalent.com.
About Catalent Biologics
Catalent Biologics provides advanced technologies and integrated
solutions for biologic development and manufacturing, including
antibody-drug conjugates (ADCs), bi- and multi-specific antibodies,
biosimilars and gene therapies, from DNA to fill/finish and
commercial supply. With more than 20 years’ experience, Catalent
Biologics has worked with 600+ monoclonal antibodies and 80+
recombinant proteins with 115+ clinical trials in progress and 11
marketed products utilizing GPEx® cell line engineering technology,
and 20 commercially approved products through fill/finish. For more
information on Catalent Biologics, visit
www.catalent.com/biologics.
More products. Better treatments. Reliably supplied.™
About Leonard Green & Partners
Leonard Green & Partners, L.P. is a leading private equity
investment firm founded in 1989 and based in Los Angeles. The firm
partners with experienced management teams and often with founders
to invest in market-leading companies. Since inception, LGP has
invested in over 90 companies in the form of traditional buyouts,
going-private transactions, recapitalizations, growth equity, and
selective public equity and debt positions. LGP primarily focuses
on companies providing services, including consumer, business, and
healthcare services, as well as retail, distribution, and
industrials. Select past and current investments include IQVIA,
MultiPlan, Aspen Dental, Whole Foods Market, Shake Shack,
Activision, and Petco. Its most recent fund, Green Equity Investors
VII, L.P., closed in 2016 with $9.6 billion of committed capital.
For more information, please visit www.leonardgreen.com.
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 our expectations and projections. Some of the
factors that could cause actual results to differ include, but are
not limited to, the following: our integration of Paragon
Bioservices, Inc. into our overall operations or realizing on the
anticipated business from the acquisition; changes to our business,
our industry, or the overall economic climate that limit our
ability to obtain the desired deleveraging, 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; or difficulty in integrating other
acquisitions into our existing business, thereby reducing or
eliminating the anticipated benefits of the acquisition. For a more
detailed discussion of these and other factors, see the information
under the caption “Risk Factors” in our Annual Report on Form 10-K
for the fiscal year ended June 30, 2018 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 statement
as a result of new information or future events or developments
except to the extent required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20190520005203/en/
Investor:Thomas Castellano+1 (732)
537-6325investors@catalent.com
Media:Chris Halling+44 (0)7580
041073chris.halling@catalent.com
Richard Kerns+44 (0) 161 728 5880richard@nepr.agency
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