Catalent to Acquire Cook Pharmica for $950M

Catalent has entered an agreement to acquire Cook Pharmica LLC, a provider of drug substance and drug product manufacturing and related services, for $950 million in cash, with $750 million to be paid at closing and the balance to be paid in installments. The acquisition expands Catalent’s position in biologics development and analytical services, manufacturing, and finished product supply.

Privately held, Cook Pharmica has capabilities across biologics development, clinical and commercial cell culture manufacturing, formulation, finished-dose manufacturing, and packaging. Cook Pharmica currently operates a 875,000 sq.-ft. development and manufacturing facility in Bloomington, IN. For the twelve months ended June 30, 2017, the company generated $179 million in revenue.
 
The Bloomington facility offers biomanufacturing capacity and expertise in sterile formulation and fill/finish across liquid and lyophilized vials, prefilled syringes, and cartridges. It aligns with Catalent’s cell line engineering, bioconjugate development, analytical services, biomanufacturing, prefilled syringe, and blow/fill/seal technologies.

Cook’s 750 associates, including its executive team, will join Catalent’s network of more than 30 sites across five continents. The transaction, subject to customary closing conditions, is expected to occur in 4Q17.

"The complementary biologics development, biomanufacturing, and fill-finish capabilities of Catalent and Cook Pharmica will provide biopharmaceutical firms with a single, integrated partner supporting a wide range of clinical and commercial needs," said John Chiminski, chair and chief executive officer of Catalent. "We are very excited to join forces with the talented Cook Pharmica team in Bloomington, Indiana and plan to invest aggressively there, in our rapidly expanding Madison, Wisconsin facility, and in the rest of the Catalent Biologics network to build a true global leader in the biologics market, which will help us to improve the lives of patients around the world."