The acquisition is expected to expand Catalent's capacity to work with highly potent compounds while enhancing its skills in integrated oral solid formulation research, production, and packaging to support customers in streamlining and accelerating their projects
The new facility will join Catalent’s network of site in Winchester, Kentucky; St. Petersburg, Florida and others. (Credit: Pexels from Pixabay)
Pharmaceutical company Catalent has signed an agreement to acquire Metrics Contract Services from Mayne Pharma Group for $475m.
Metrics is a full-service speciality Contract Development and Manufacturing Organization (CDMO) with a facility in Greenville, North Carolina.
Once completed, the acquisition will expand Catalent’s capacity to work with highly potent compounds while enhancing its skills in integrated oral solid formulation research, production, and packaging to support customers in streamlining and accelerating their projects.
The 333,000ft² Greenville facility can accelerate and de-risk customer programmes from early development through commercial launch to streamline one-site solution.
The facility has undergone more than $100m in capital improvements over the last five years, and as a result, it now has 16 manufacturing suites.
Of 16 manufacturing suites, 11 can handle highly potent compounds, along with two packaging lines that can accommodate a wide range of development and commercial supply programmes.
The facility’s capacity to produce more than one billion oral solid dosage units annually is estimated.
Mayne Pharma chief executive officer Scott Richards said: “Over the past several years, Metrics has undergone a period of transformational change to expand its footprint and service offering, becoming a global end-to-end novel oral solid CDMO.
“Catalent, a global leader in advanced drug development and manufacturing, is well-positioned to continue to invest in and accelerate the growth of Metrics and we believe this transaction will be extremely positive for our Greenville team and customers.”
The new facility will join Catalent’s oral development and manufacturing network.
The deal is anticipated to close by the end of the current fiscal year, subject to customary closing conditions. The entire team of more than 400 employees will join Catalent.
Furthermore, Catalent and Mayne Pharma agreed on the terms of a long-term supply agreement under which the Greenville facility will continue to produce multiple Mayne Pharma products.
Catalent will use a combination of cash on hand, current credit facilities, and, depending on market conditions, maybe fresh debt financing to pay the purchase price for this all-cash acquisition.