Catalent to Acquire Cook Pharmica for $950 Million

Catalent has made the latest move in the restructuring of the contract development and manufacturing organization (CDMO) market with the announced acquisition of Cook Pharmica LLC, for $950 million, adding to Catalent’s existing biologics drug development and manufacturing capacities. On Sept. 19, 2017, Catalent announced the agreement to acquire Cook Pharmica, a provider of drug substance and drug product manufacturing and related services to strengthen the company’s position as in biologics development and analytical services, manufacturing, and finished product supply, according to a press statement announcing the acquisition.

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. For the 12 months ending June 30, 2017, Cook Pharmica generated $179 million in revenue, Catalent reports.

Cook Pharmica is a privately held, biologics-focused CDMO with capabilities in development, clinical and commercial cell-culture manufacturing, formulation, finished-dose manufacturing, and packaging. The company operates an 875,000-sq.-ft. development and manufacturing facility in Bloomington, IN, that features biomanufacturing capacity for sterile formulation and fill/finish for liquid and lyophilized vials, prefilled syringes, and cartridges.

Upon completion of the acquisition, Cook Pharmica’s 750 employees, including its executive team, will join Catalent. 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, Catalent reports.

“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 in a press statement. “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, WI 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.”

Source: Catalent