Market Overview

Possible Thermo Fisher Takeover of Patheon Hoists Both Stocks

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Shares in Dutch drug ingredients maker Patheon NV (NYSE: PTHN) skyrocketed Monday morning as on overtures by scientific instruments maker Thermo Fisher Scientific Inc. (NYSE: TMO) to buy the company for $35.00 per share in cash.

Bloomberg has said an agreement between Thermo Fisher and the Dutch drug ingredients maker could be reached as early as this week. However, the source added the discussions could still falter, and there's no certainty a deal will be reached.

 
The transaction represents a purchase price of approximately $7.2 billion, which includes the assumption of approximately $2.0 billion of net debt.
 
Patheon provides comprehensive, integrated and highly customizable solutions as well as the expertise to help biopharmaceutical companies of all sizes satisfy complex development and manufacturing needs. It is a leader in the high-growth, $40-billion contract development and manufacturing organization (CDMO) market, which is fuelled by growing customer demand for end-to-end solutions, flexible and scalable capacity, and regulatory expertise.
 
Thermo Fisher has seen its stock rise over 21% in 2017, bringing its market value to about $67.1 billion. The shares opened Monday morning at $172.90, a leap of $1.38 from Friday.
 
Shares of Patheon have fallen about 9.4% this year, valuing the company at about $3.8 billion. Those shares registered Monday at $34.58, up $8.58, or 33%, from Friday's close.