November 10, 1998 - Concludes Deal For Italian Pharmaceutical Plant
Mr. Robert C. Tedford, Chief Executive Officer of Patheon Inc., Canada's largest integrated provider of pharmaceutical contact manufacturing services, announces that the Company has finalized its previously announced purchase of its first international manufacturing facility.
On November 6, 1998 Patheon signed a definitive agreement of purchase and sale with the Roche Group of Basel, Switzerland, to purchase the shares and shareholder loans of an Italian subsidiary of Roche for a total consideration of approximately US$10.2 million. Closing is expected to be December 31, 1998. "Terms of the transaction" noted Robert Tedford, CEO of Patheon, "include long term manufacturing contracts". The contracts represent virtually all of the production in the facility, which is presently operating in the 40% capacity range. The acquisition is expected to be accretive to earnings beginning in the first year of operations.
The manufacturing facility is located near Milan, Italy and covers 300,000 square feet. It employs 234 people in the fully integrated manufacture of sterile/injectable dosage forms, along with solid, semi-solid and powder forms. As part of the purchase agreement, management and staff will remain with the facility, which was built in 1976. "The acquisition of this European manufacturing site is integral to Patheon's growth strategy" added CEO Tedford. "It complements our solid and semi-solid dosage capacity and brings new sterile/injectable capabilities that will allow Patheon to offer a broader range of manufacturing and formulation development services to the pharmaceutical industry world-wide. Patheon currently serves 15 of the world's 25 largest pharmaceutical companies from its North American plants. Securing this European facility positions us to take even greater advantage of the global outsourcing trend in the industry".
The Italian facility is the second plant that Patheon has purchased from Roche. "It is a major step forward toward achieving our vision of becoming a leader in the pharmaceutical manufacturing services sector" said Nick DiPietro, President and Chief Operating Officer of Patheon. "When we acquired our state-of-the-art Syntex Court site in Mississauga from Roche in 1997, it was operating at 5% capacity. In just two years, we have taken it to 40% capacity and are optimistic about adding further volume".
Patheon is one of North America's leading independent providers of drug manufacturing and development services in the rapidly growing pharmaceutical outsourcing sector. Patheon and its 48 per cent owned Global Pharm affiliate operate five cGMP facilities in Canada employing over 700 people. Patheon serves many of the world's largest pharmaceutical companies, and a growing number of pharmaceutical biotechnology companies.
TEL: (905) 812-6760 Mr. Robert C. Tedford, Chief Executive Officer FAX: (905) 812-6705 Internet: www.patheon.com |
