SOMERSET, N.J.--(BUSINESS WIRE)--Catalent, Inc. (NYSE:CTLT), the leading global provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products, today announced an agreement for Catalent, through its wholly owned subsidiary, Catalent Pharma Solutions, Inc., to acquire Pharmatek Laboratories, Inc., a West Coast, U.S.-based specialist in drug development and clinical manufacturing. The 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 addition of spray drying will also provide Catalent customers with a comprehensive suite of bioavailability enhancement solutions, while complementing and expanding Catalent’s OptiForm® Solution Suite platform, a science-driven parallel screening approach to identify the optimal formulation pathway for poorly soluble compounds. No financial details have been disclosed.
Founded in 1999, Pharmatek provides dosage form development and clinical-scale cGMP manufacturing of oral, injectable and topical products for more than 100 customers globally. At its San Diego facility, Pharmatek offers a fully integrated drug development platform, with discovery formulation screening for lead selection and optimization, comprehensive formulation development and analytical services, and finished dose form manufacturing for clinical supply. Additional services include first-in-man strategies, solutions for poorly soluble compounds, controlled release formulations, and specialized facilities and controls for potent compound handling.
“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. He added, “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.”
Pharmatek’s site in San Diego is a cGMP facility that employs nearly 200 people, whose experience and expertise will complement Catalent’s existing development and analytical services teams, based at multiple locations globally. Pharmatek provides development and analytical services for more than 120 molecules annually, and its facility comprises 68,000 square feet of laboratory, manufacturing and support space, with 2 analytical labs, 2 formulation labs, 4 engineering rooms and 9 Certified ISO Class 8 manufacturing suites. The site also features 18,000 square feet of laboratory, manufacturing and support space dedicated to development and manufacturing of highly-potent compounds.
The transaction is subject to customary closing conditions and is expected to close in the next few weeks. Catalent intends to pay for this all-cash acquisition through a combination of existing cash and borrowings under Catalent's existing revolving credit facility. The acquisition will not change Catalent's fiscal 2017 financial guidance. The purchase price will not be disclosed as it is not material to Catalent’s financial results.
Catalent is the leading global provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products. With over 80 years serving the industry, Catalent has proven expertise in bringing more customer products to market faster, enhancing product performance and ensuring reliable clinical and commercial product supply. Catalent employs approximately 9,200 people, including over 1,400 scientists, at 33 facilities across 5 continents, and in fiscal 2016 generated $1.85 billion in annual revenue. Catalent is headquartered in Somerset, N.J. For more information, visit www.catalent.com
More products. Better treatments. Reliably supplied.™
This press release contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally can be identified by the use of statements that include phrases such as “believe,” “expect,” “anticipate”, “intend”, “estimate”, “plan”, “project”, “foresee”, “likely”, “may”, “will”, “would” or other words or phrases with similar meanings. Similarly, statements that describe our objectives, plans or goals are, or may be, forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Catalent’s expectations and projections. Some of the factors that could cause actual results to differ include, but are not limited to, the following: any failure to close the agreed acquisition of Pharmatek, due to the failure of a condition to closing that is not or cannot be waived, or otherwise; the failure of the Pharmatek business to perform as expected following the closing, due to underlying conditions of the business not perceived during pre-signing diligence activities, changes in the management or operation of the business wrought by the acquisition, any failure to integrate adequately the business and operations of Pharmatek into the larger Catalent network, or any other reason; general industry conditions and competition; product or other liability risk inherent in the design, development, manufacture and marketing of our offerings; inability to enhance our existing or introduce new technology or services in a timely manner; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; and our substantial debt and debt service requirements that restrict our operating and financial flexibility and impose significant interest and financial costs. For a more detailed discussion of these and other factors, see the information under the caption “Risk Factors” in the Catalent, Inc. Annual Report on Form 10-K for the fiscal year ended June 30, 2016, filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this release or as of the date they are made, and Catalent does not undertake to update any forward-looking statements as a result of new information or future events or developments unless required by law.