Catalent (CTLT) Unit to Acquire Pharmatek Laboratories

September 13, 2016 7:31 AM EDT
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Catalent, Inc. (NYSE: CTLT) 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.

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