Patheon completes Mova purchase

Related tags Credit Manufacturing

Contract manufacturing company Patheon has completed its $350m
(€259m)acquisition of Puerto Rican rival Mova Pharmaceuticals,
first announced in November.

Robert Tedford, Patheon's CEO, said the acquisition "transforms Patheon, creating one of the world's largest independent providers of integrated pharmaceutical development and manufacturing services."

The acquisition represents a strategic shift for Mississauga, Canada-based Patheon, which has in the past grown its capacity by purchasing excess manufacturing plants from pharmaceutical firms, with these transactions mostly including 'contracts in place' to make what the plant was producing beforehand.

It also gives the company the benefit of a facility in the US , the world's largest and fastest growing pharmaceutical market, and makes it one of the largest pharmaceutical outsourcing companies, with more than 5,600 employees (1,600 from Mova) and 14 manufacturing facilities, four in Europe and 10 in North America.

The purchase price may be increased to a maximum of $441 million, based on earn-out arrangements relating to Mova's results of operations for fiscal 2004 and the first six months of fiscal 2005.

Meanwhile, Patheon has completed a financing agreement with Royal Bank of Canada for a new $169 million loan, comprising a three-year revolving credit facility of up to $55 million and

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