Catalent, Inc. the leading global provider of advanced delivery technologies and development solutions for drugs, biologics and consumer health products, has reached an agreement to acquire Bloomington, Indiana-based Cook Pharmica LLC, an integrated provider of drug substance and drug product manufacturing and related services.
The purchase price is $950 million, with $750 million to be paid at closing and the balance to be paid in equal installments, without interest, on each of the next four anniversaries of the closing.
The acquisition will strengthen Catalent’s position as a leader in the rapidly growing area of biologics development and analytical services, manufacturing and finished product supply.
Cook Pharmica is a privately held, biologics-focused contract development and manufacturing organisation with capabilities across biologics development, clinical and commercial cell culture manufacturing, formulation, finished-dose manufacturing and packaging.
Founded in 2004 as a division of the Cook Group, Cook Pharmica operates a world-class, 875,000 square foot development and manufacturing facility in Bloomington. For the 12 months ended 30 June 2017, Cook Pharmica generated $179 million in revenue.
“The complementary biologics development, biomanufacturing, and fill-finish capabilities of Catalent and Cook Pharmica will provide biopharmaceutical firms with a single, integrated partner supporting a wide range of clinical and commercial needs,” said John Chiminski, Chair and CEO of Catalent.
“We are very excited to join forces with the talented Cook Pharmica team in Bloomington, Indiana and plan to invest aggressively there, in our rapidly expanding Madison, Wisconsin facility, and in the rest of the Catalent Biologics network to build a true global leader in the biologics market, which will help us to improve the lives of patients around the world.”
Mr Chiminski added: “This acquisition is also a recognition of the hard work, dedication, and community spirit of the team who have helped Cook Pharmica grow, and of the Bloomington area, which is such a terrific home for this fast-growing business. We look forward to strengthening Cook Pharmica’s partnership with the community in the years to come as we further strengthen our leadership position in biologics.”
Catalent Biologics currently offers a global site network, including a state-of-the-art biologics development and biomanufacturing facility in Madison, fill-finish services in Brussels, Belgium and Limoges, France, SMARTag conjugation technology in Emeryville, California, and a network of biologics analytical locations.
Cook Pharmica’s Bloomington facility has extensive biomanufacturing capacity and deep expertise in sterile formulation and fill-finish across liquid and lyophilised vials, prefilled syringes and cartridges. It perfectly augments Catalent’s expertise in cell line engineering, bioconjugate development, analytical services, biomanufacturing, prefilled syringe and blow/fill/seal technologies.
On completion, Cook Pharmica’s more than 750 associates, including its experienced executive team, will join Catalent’s network of more than 30 sites across five continents with more than 10,000 team members and complement Catalent’s existing biologics capabilities, alongside its other leading capabilities in oral, inhalation, and consumer health.
The completion of the transaction is subject to customary closing conditions, including approval from regulatory authorities, and is expected to occur in the fourth quarter of this calendar year.