Catalent's New Acquisition will Expand High-Potent Capabilities, Oral Manufacturing Capacity: Report

Catalent's New Acquisition will Expand High-Potent Capabilities, Oral Manufacturing Capacity: Report
  • Catalent Inc CTLT agreed to acquire Metrics Contract Services, a full-service specialty Contract Development and Manufacturing Organization, for $475 million from Mayne Pharma Group Limited.
  • Upon completion, the acquisition will strengthen Catalent's integrated oral solid formulation development, manufacturing, and packaging capabilities.
  • The deal will also expand Catalent's capacity to handle highly potent compounds.
  • Metrics Contract operates a 333,000-square-foot facility in Greenville, North Carolina. It includes 16 manufacturing suites, with 11 designed to handle highly potent compounds and two packaging lines. 
  • The facility's estimated annual production capacity exceeds one billion oral solid dose units.
  • The acquisition is expected to close before the end of 2022, and a team of over 400 employees will join Catalent. 
  • Mayne Pharma and Catalent have also agreed on a long-term supply agreement whereby the Greenville facility will continue manufacturing multiple Mayne Pharma products. 
  • Catalent held cash & cash equivalents of $786 million at the end of the March quarter.
  • Price Action: CTLT shares closed at $108.13 on Tuesday.

Posted In: BriefsM&ANewsHealth CarePre-Market OutlookGeneral