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news.Catalent has agreed to acquire Indiana-based contract development and manufacturing organization (CDMO) Cook Pharmica for $950m to consolidate its position in the bio-pharma sector.
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The New Jersey-based drug contract manufacturer will pay $750m at the time of closing of the transaction. It will pay the remainder amount in interest-free equal installments over a period of four years upon the closing of the deal.
Established in 2004 as a unit of the Cook Group, Cook Pharmica is into biologics-focused contract development and manufacturing. It has capabilities in biologics development, formulation, clinical and commercial cell culture manufacturing, finished-dose manufacturing, and also in packaging.
Catalent, through the transaction, will get access to Cook Pharmica’s 875,000 ft2 development and manufacturing facility in Bloomington. Cook Pharmica had generated $179m in revenue during the 12-month period that ended on 30 June 2017.
Catalent chairman and CEO John Chiminski said: “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.”
Post acquisition, Cook Pharmica’s employees will be absorbed in Catalent’s network of over 30 sites spread across five continents and employing over 10,000 people.
Cook Group and Cook Medical president Pete Yonkman said: “We only consider opportunities like this when it clearly benefits the patients we serve, our employees, the community, and both companies.
“In this case, we feel confident that this is a good decision for all involved, including the more than 750 Cook Pharmica employees whose jobs are all secure. All of those employees will become part of Catalent’s growing biologics business and remain under the leadership of Cook Pharmica’s president, Tedd Green.”
The transaction is anticipated to be completed in the fourth quarter of this year. It would need to be approved by regulatory authorities apart from meeting other customary closing conditions.
Image: Catalent to purchase Cook Pharmica for $950m in an all-cash deal. Photo: courtesy of Stuart Miles at FreeDigitalPhotos.net.
