Patheon and its parent, DPx, have been on a buying and expansion binge since the company was created last year, grabbing up smaller CMOs to build out both capabilities and capacity. With an IPO in the works, more deals may be coming but the CDMO has ended up with operations that don't fit its model and is shedding those along the way, including two deals this week.
Patheon has been on an M&A blitz, buying up specialty manufacturers that can help it broaden its network as it muscles up as a global CDMO. But the North Carolina-based company is unafraid to shed assets that no longer fit that blueprint and so is selling a plant in Mexico to over-the-counter king Perrigo.
Contract manufacturer AMRI has been reworking its manufacturing assets, picking up valuable pieces here and there and then sacrificing a less important one as it moves toward contract manufacturing and away from a reliance on royalties. Its most recent earnings suggest the strategy is paying off on the top line at least.
Pennsylvania-based Recro Pharma has picked up a new plant and jumped into the contract manufacturing business, while Irish drugmaker Alkermes is now one plant shorter and out of the CMO biz.
Quest Diagnostics is partnering with contract research organization Quintiles to create a joint venture to provide a range of clinical trial services to biopharmas including laboratory testing and patient recruitment and retention as well as development and commercialization of companion diagnostics.
Ophthalmic and surgical sutures for holding tissue together after medical procedures will no longer be made in Exeter Township, PA, thanks to the upcoming closure of the Surgical Specialties' manufacturing plant in the Philadelphia suburb. It will come at a cost of 254 jobs.
Norwegian drugmaker Weifa figures its consumer health biz and its contract active pharmaceutical ingredient operations both have a better shot at growth if they go their separate ways. To make that happen, Weifa plans on spinning the API business off into a contract manufacturing operation, with its first contract to make the APIs for Weifa.
In an effort to expand into life sciences, Tokyo-based JSR, a materials producer with 5,500 employees, has announced its intention to acquire Durham, NC-based contract manufacturer KBI Biopharma.
Outsourced product design specialist TE Connectivity will increase its focus on medical devices with its $190 million purchase of catheter player AdvancedCath.
The head of the U.K.'s Trade & Investment Ministry has begun a three-day visit to India to focus on biotech and health issues, beginning with the Bangalore India Bio, the nation's major biotech conference.