Private investment firm JLL Partners is orchestrating a $2.6 billion merger of its Canadian contract manufacturer Patheon ($PTI) with the Netherlands-based DSM Pharmaceutical Products on the bet that the combined company will grow in a growing niche of the industry.
Private equity investors JLL Partners put a sharp focus on the potential in the CMO industry last month when it orchestrated a $2.6 billion deal merging two contract manufacturing companies into a global operation. It also illustrated the pressure smaller players are under to beef up if they are to compete. Pharma Tech Industries (PTI) has been doing just that.
CMO Patheon is investing in a U.K. site to increase capacity and add capabilities, including automated capsule filling. The expansion comes as Patheon prepares to merge with DSM's pharma business under the ownership of JLL Partners.
Private equity outfit JLL Partners bet big on contract manufacturing last week with its $2.6 billion deal to combine Dutch Royal DSM with its portfolio CMO Patheon, and the fund's co-founder said the company's not done yet.
The contract manufacturing market should grow to about $18.5 billion over the next several years, driven in part by a demand for injectable drugs in general and specialized cancer drugs in particular. That, at least, is the view of consultants Frost & Sullivan.
After months of regulatory woes and declining demand, Lonza is planning to cut two-thirds of its staff at a Massachusetts biologics plant, part of the CMO's overall effort to restructure and adapt to a changing market for commercial manufacturing.
After years of back-and-forth with the FDA, AMRI believes it's close to getting clear of a 2010 warning letter for its Burlington, MA, plant, completing a reinspection and preparing a final report.
Diagnostics outfit Corgenix is upping its stake in the contract manufacturing game, inking a deal with EDP Biotech to produce a colon cancer test.
Roche has a taken a hands-on approach with regulating its contractors, installing staff at each of its CMOs to ensure sterility and protect against the third-party manufacturing problems that have cost its competitors time and money.
Contract manufacturing has become a hot investment, and Novartis thinks it may be time to cash in. The Swiss drugmaker and its partners are looking at selling their joint venture, LTS Lohmann.