Patheon completes agreement with Novartis for long term supply contracts and purchase of Canadian pharmaceutical manufacturing plant

Patheon Inc. recently announced that it has completed its agreement with Novartis Pharmaceuticals Canada Inc. to provide long term manufacturing and supply services to Novartis and to purchase Novartis’ pharmaceutical manufacturing facility located in Whitby, Canada, as announced on March 19, 2001. Under the agreement, Patheon has agreed to employ substantially all the workforce of approximately 400 people at the plant, and will continue to manufacture and supply almost all of the products currently produced at the plant.

The purchase price for the facility was $28 million, subject to normal closing adjustments and the assumption of certain liabilities. Patheon has also acquired inventories of approximately $6.5 million, consisting of raw materials, packaging components and work in process. The acquisition of the assets was financed through debt facilities with Patheon’s bankers.

Patheon is a leading independent provider of drug manufacturing and development services in the rapidly growing pharmaceutical outsourcing sector. Patheon operates nine cGMP facilities in Canada and Europe, employing almost 2,400 people. Patheon currently serves a growing client base of pharmaceutical and biotechnology companies from its North American and European operations, including 12 of the world’s 20 largest pharmaceutical companies.

Novartis is a world leader in healthcare with core businesses in pharmaceuticals, consumer health, generics, eye-care, and animal health. In 2000, the Group's ongoing businesses achieved sales of $25.5 billion and invested approximately $3.5 billion in R&D. Headquartered in Basel, Switzerland, Novartis employs about 67,600 people and operates in over 140 countries around the world.

Source: Patheon Inc.