Perrigo enters softgel space buying ex-Banner operations for $34m from Patheon

Patheon has sold its Mexican operations to Perrigo for $34m as it looks to transform the Banner business it acquired back in 2012.

In October 2012, Patheon shelled out $255m (€240m) to acquire the softgel specialist Banner Pharmacaps, adding research labs and production facilities in the Netherlands, Canada and Mexico to its oral dosage business.

But as part of plans of “Patheon’s ongoing transformative effort,” the contract development and manufacturing organisation (CDMO) has sold all its operations in Mexico to over-the-counter drugmaker Perrigo, spokesman Tyler Gronbach told this publication.

“This business was originally acquired when we purchased the Banner business back in 2012 and we have elected to sell the operations as it no longer aligns with Banner’s new strategy to become a leading specialty pharma company.”

The business manufactures over-the-counter and nutritional products for consumption in the local markets from a facility in Estado de Mexico.

The facility is the second Banner plant to be offloaded following the Patheon acquisition. In 2013, the firm announced it was shuttering the ex-Banner Olds, Canada facility as part of its integration plans.

The $34m cash deal launches Perrigo into the softgel sector: “Perrigo has long desired to be a prime manufacturer of softgel products and we believe the acquisition of Patheon's Mexican operations serves as an ideal entry point into the space,” CEO Joseph Papa said.

Investing in stability testing

In other news, Patheon is bolstering its stability testing capabilities through a $3m investment at a facility in North Carolina, adding automated systems and assembling a highly experienced scientific team to enhance its centralized stability lab offerings

“[The investment] in Greenville allows Patheon to deliver faster results for our customers’ late-stage development and commercial products,” Gronbach told us. “This allows our customers to keep intellectual property closer to home, while also benefiting from Patheon’s ability to take their drug all the way from development to commercial launch.”

The expansion will allow the plant to offer customers 30,000 cubic feet of storage and the ability to support complex projects, he added.