Catalent, bucking Lonza M&A reports, buys out Pharmatek in all-cash deal

Apparent Lonza target Catalent ($CTLT) has produced an about-face with its buyout of drug development and clinical manufacturing company Pharmatek for an undisclosed sum.

Back in April, rumors began to surface that the CDMO was in the crosshairs of the Swiss research manufacturing service provider Lonza, but today it has announced an all-cash deal to acquire San Diego’s Pharmatek Laboratories.

This 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 NJ-based company said in a statement.

First launched 17 years’ ago, Pharmatek works on dosage form development and clinical-scale cGMP manufacturing of oral, injectable and topical product, as well as its own drug development platform.

“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.

“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.”

Catalent said Pharmatek’s price tag “will not be disclosed as it is not material to Catalent’s financial results.”

Early this morning the market was not overly impressed, with Catalent’s shares down 1.7% by 10AM ET, with a market cap of $3 billion.