- Catalent announced Tuesday that it completed its deal to acquire U.K.-based Juniper Pharmaceuticals for $11.50 per share, or a total value of $130 million.
- The acquisition will strengthen Catalent’s offerings in formulation development, bioavailability solutions, and clinical-scale oral dose manufacturing.
- It's also the most recent example of consolidation in the contract manufacturing space, as service providers aim to increase their capabilities in R&D and production to meet drugmakers’ demands.
The merger of Catalent and Juniper adds to the deal-making streak seen among contract development and manufacturing organizations (CDMOs).
Last month, WuXi Biologics announced that it would partner with Immune Pharmaceuticals on late-stage production of bertilimumab, an anti-eotaxin-1 monoclonal antibody. The deal was the Chinese drug manufacturer's sixth merger or partnership in 2018.
Also in 2017, Thermo Fisher bought the Dutch CDMO Patheon in a $7.2 billion acquisition.
The CDMOs that have consolidate argue they can resultingly offer more comprehensive services, but the deal-making has also narrowed outsourcing options for drugmakers.
Catalent's latest purchase will expand the company’s services in formulation development, bioavailability solutions and clinical-scale oral dose manufacturing. The manufacturer expects to use Juniper’s know-how in early-phase product development and supply to provide drugmakers with more wide-ranging and rapid R&D. With the acquisition, Catalent can utilize Juniper’s expertise in development of poorly soluble compounds, including nano-milling, spray drying, hot-melt extrusion, lipid-based drug delivery and cGMP clinical manufacturing.
Additionally, Catalent will also expand its manufacturing facilities around the world. In 2016, it purchased Pharmatek Laboratories, and has invested in its San Diego facility to beef up early drug development on the U.S. West Coast. Earlier this year, Catalent announced an investment in its Somerset, New Jersey, facility to focus too on early drug development on the U.S. East Coast.
Juniper provides similar capabilities in the U.K.— complementing Catalent’s existing oral drug manufacturing network.