Catalent said today it plans to acquire Pharmatek Laboratories, a contract drug development and clinical manufacturing company, for an undisclosed price.
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.
Catalent said its planned acquisition of Pharmatek will add discovery-to-clinic drug development capabilities, expand its capability for handling highly potent compounds, and add spray drying to its technologies. The addition of spray drying, Catalent said, will also provide its customers with a comprehensive suite of bioavailability enhancement solutions, while complementing and expanding its OptiForm® Solution Suite platform, designed to identify the optimal formulation pathway for poorly soluble compounds.
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. The company’s services also include first-in-man strategies, solutions for poorly soluble compounds, controlled release formulations, and specialized facilities and controls for potent compound handling.
“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 provide additional access to the Asia-Pacific markets,” Barry Littlejohns, president of Catalent’s Drug Delivery Solutions business, said in a statement.
Pharmatek’s San Diego cGMP facility includes 68,000 square feet of laboratory, manufacturing, and support space, with two analytical labs, two formulation labs, four engineering rooms, and nine 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.
Pharmatek employs nearly 200 people at the San Diego site; Catalent employs approximately 9200 people, including more than 1400 scientists, at 33 facilities across five continents.
The acquisition is expected to close “in the next few weeks,” Catalent said, subject to customary closing conditions.
Catalent said the purchase “is not material to Catalent’s financial results,” and would be an all-cash transaction intended to be paid through a combination of existing cash and Catalent's existing revolving credit facility.
The deal, Catalent added, will not affect the company's financial guidance for its fiscal year 2017, which began on July 1.
On August 29, Catalent told investors it expects revenue in the range of $1.920 billion to $1.995 billion; adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the range of $430 million to $455 million; and adjusted net income in the range of $165 million to $190 million.