Thermo Fisher Scientific Inc. (NYSE:TMO) said on Monday that it will buy Patheon NV (NYSE:PTHN).
Thermo Fisher announced it would acquire all of the Dutch drug ingredient maker’s shares for $35 in cash. This is 35 percent higher than where the stock closed on Friday.
Patheon CEO James Mullen said in a statement: “Over the past several years, we have increased our capabilities to become a leading CDMO provider in a highly fragmented market,”
“We are confident that our combined offerings and Thermo Fisher’s proven track record of disciplined M&A and successful integrations will take our business to the next level,” he added.
Patheon is a manufacturing and contract development group. It contracts with other companies to develop drugs. By buying Pantheon, Thermo Fisher hopes to enter a high-growth market that helps them bring drugs to the market at lower costs and a quicker pace.
Marc N. Casper, president and chief executive officer of Thermo Fisher Scientific, said: “Patheon’s development and manufacturing capabilities are an excellent complement to our industry-leading offering for the biopharma market,”
“Our combined capabilities will enhance our unique value proposition for these customers, create significant value for our shareholders and further accelerate our company’s growth.”
“We look forward to welcoming our new colleagues from Patheon to Thermo Fisher. Patheon’s commitment to quality and service excellence is directly aligned with our focus on helping our biopharma customers accelerate innovation and drive productivity.” he continued.
Leerink analysts wrote in a client note: “Thermo Fisher already had a developing and strong position in clinical trial manufacturing and now expands that arm into drug manufacturing, which is likely to highlight its growing presence in the market of bioproduction and bioprocessing,”
The deal, including debt, represents a purchase price of an estimated $7.2 billion. It is expected to close by the end of 2017.