Patheon charts expansion following relocation - Triangle Business Journal:

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derives most of its revenue from manufacturing approved drugs for pharmaceutica research companiesincluding , , , Amgen and . Patheon CEO Wes Wheeler says he sees opportunitty in expandinghis company’s production of drugs that aren’t yet approvedc for sale but are needed for clinical trials. Of Patheon’s $582 million (U.S.) in annualp revenue, some $114 million comes from the manufacture of drugzs forclinical trials. That latter number is the one Wheeler wants to While the company employsabout 4,600 people globally, its Triangle footprint is small, with 25 workers in the business park. The company also opened a laboratorgy a short drive away on KitCreeo Road.
Wheeler says the lab, which has 10 chemistse now, could employ 50 by summer. The lab supports a Cincinnatuimanufacturing facility. Wheeler characterizes the Durham lab asa “launcj bed” from which growth will spring. who previously worked as a senior vice presidentfor GlaxoSmithKline’s manufacturing unit in Research Triangle Park, envisions small-scalw manufacturing and consulting services being part of the mix in To add heft to his the CEO is keepingg an eye out for acquisitions that woul arm Patheon with the resources needed to do more early-staged work for pharmaceutical companies.
An aggressive acquisition strategyt since 1995 has served as a key driverf of growthfor Patheon, which was founded in 1974 as . Over the past 13 the company has acquired 10 facilitiee throughoutthe world. The most recengt acquisition – and the largest to date was a $284 million purchasew of three Puerto Rican facilitiefrom . But growth has come with challenges. Patheohn blamed a $77 million loss in 2007 on expenses related to the PuertRican acquisitions, and the company has been consolidating work at thosed facilities to cut costs. Volumes have come down as key product s produced there approachedpatent expiration. Patheonh on Jan.
31 closed a plang in Carolina, Puerto Rico, that was hit with a warninyg letter from the in 2005 for manufacturinh inconsistencies in the productionof Abbott’ss antibiotic Omnicef. For fiscal 2008, Patheon shave d its losses to $1.14 million on sales of $582 Douglas Loe, an analyst with in Toronto, writes in a recent researcnh report that the problems may have existedd at the Mova facilities prior to Patheonbuyingh them. Loe, who owns no Patheon shares, notes that the Canadianj concern has restored its Puert Rico operationsto profitability. Patheon’s stoco has been trading at arounf $2 (U.S.) on the .
Last the company said it had been told that New York private equityu firm planned an unsolicited offeer to buy all of the Patheon shares it does not already ownfor $2 a share. Patheon stated in a news release that JLL currently owns 29 perceng of the restricted voting shares ofthe company. No formalo offer has yet been but Patheon has hired advisers to help it determind how to react in the event one is Loesays JLL’s proposal is a stee p discount to the fair value of the company. He sets a $3.25 (U.S.
) target price for the Industry observers say Patheobn is in a good space becausw pharmas increasingly are turning to contract companies to make their pharmacy professor Ping Lee says big drug companiews can save money by turning to contracrt manufacturers such as Patheo nand Catalent. “More and more, I see this outsourcint to companieslike Patheon,” Lee says. Loe views Patheon’e focus on pharmaceutical development services as a good move for the He says the work Patheon does on clinicakl stage drugs could transitionto higher-revenue manufacturing