Catalent exits commercial packaging business
pharmafile | June 1, 2012 | News story | Manufacturing and Production |Â Â Catalent, Frazier HealthcareÂ
Catalent Pharma Solutions has decided to sell its US-based commercial packaging business to private equity group Frazier Healthcare.
Catalent said the decision to sell off the business would allow it to focus on “development solutions and advanced delivery technologies, clinical trial supplies, [and] advanced blow/fill/seal aseptic delivery technology “.
Financial terms of the deal were not disclosed, but Catalent said it hopes to close the divestment within the next few months.
The main asset covered by the agreement include a 428,000 sq. ft. packaging plant in north east Philadelphia – the largest in Catalent’s network – that employs around 530 people. A clinical supply services on the same site will be retained, as will a similar facility in Mount Laurel and all Catalent’s packaging facilities outside the US.
A smaller unit in Woodstock, Illinois, is also included in the divestment, although it does not extend to the blow/fill/seal activities at the same site. Likewise, Catalent said its clinical packaging operations in Philadelphia will be retained.
Catalent has been refining its business mix in recent months, buying clinical trial supply specialist Aptuit last year for $410m, for example, and selling off its printed components division. The outsourcing specialist has said it intends to add additional capabilities in its core operations – as well as greater geographic reach – through acquisitions.
The overall aim is to gain the scale and reach in its main outsourcing services in order to win strategic-level agreements with multinational drugmakers.
Last month, Catalent reported that first-quarter revenues rose 11% compared to the first quarter of 2011 to $465 million, thanks to the contribution of Aptuit during the period which contributed $29 million of the $55 million increase year-on-year.
Packaging services contributed $37m in the quarter, down 3%, although operating profits rose 50% thanks to improved manufacturing efficiencies and cost-savings.
Phil Taylor
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