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.
Investor:
Thomas Castellano, (732) 537-6325
investors@catalent.com
or
Media:
Chris Halling, +44 (0)7580 041073
chris.halling@catalent.com
or
Richard Kerns, +44 (0) 161 728 5880
richard@nepr.eu