Global CMO Patheon ($PTI) sold its secondary clinical packaging and clinical distribution services business, part of the company's ongoing efforts to slash costs and reposition itself.
Patheon didn't disclose the financial terms of the deal, but Canadian firm Bellwyck Packaging Solutions will take up the unit, which operates out of Burlington, Canada, and Cincinnati, OH.
The CMO is in a transitional stage after failing to sell its Swindon, U.K., plant, and now plans to finish up as much as production there as it can and transfer the rest to other facilities over the next few years. The Swindon woes racked up a $57.9 million charge for Patheon in the last quarter, contributing to a $79.7 million loss for the period.
However, Patheon's core business has been on the up-and-up, with total revenue up 6.8% percent to $181.5 million last quarter, and CMO revenue up 6.1%. The company is projecting 2012 revenue to reach about $725 million.
The packaging and distribution sale is designed to help Patheon focus its efforts on its most profitable businesses, CEO James Mullen said in a statement. "While we don't expect the terms of the transaction to have a material impact on our ongoing results, this transaction is part of our continued focus on our core competencies of solid-dose and parenteral development and manufacturing," Mullen said.
Patheon didn't disclose how many people are employed by the outgoing unit, but did say 20 will join Bellwyck after it changes hands.
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