- Contracted services provider Catalent is growing its European business, announcing plans on Wednesday to buy an Italy-based manufacturing facility from Bristol-Myers Squibb.
- The facility makes oral solid, biologics, and sterile product manufacturing and packaging. According to Bristol-Myers, it was one of the main launch sites for new medicines targeting cancer and cardiovascular disease. The big pharma didn't specifically name which of its drugs were made or launched from the site, nor did it disclose financial terms of the deal.
- Catalent said the facility in Anagni, Italy, will provide its biologics customers greater access to advanced sterile drug product fill/finish and packaging services in Europe, as well as complement the company's existing footprint, which includes sites in North America and Belgium.
A global shortage of the active pharmaceutical ingredient for ibuprofen hurt Catalent's bottom line in recent quarters. In the period between January and March, the shortage spurred a 1% year-over-year decline in the company's Softgel Technologies segment, mostly because of weaker demand in North America.
Greater demand in Europe, however, helped offset the Softgel declines. Across Catalent's entire business, revenue from Europe hit $201 million for the three-month period, accounting for roughly a third of its total revenue.
Catalent is now trying to expand its footprint in that market, with a particular focus on biologics customers. Biologics and specialty drug delivery has become a growth area for the company.
The deal announced Wednesday carries with it one assured customer in Bristol-Myers. Catalent said it will continue the manufacturing of Bristol-Myers Squibb's product portfolio at the Anagni site once the transaction closes.
Like other pharmaceutical services providers, Catalent has been building out its business to meet growing client demands. In April, the company agreed to acquire Paragon Bioservices, a contracted developer and manufacturer of gene therapies, for $1.2 billion. It also recently announced a nearly $14 million expansion plan for a biologics site in Indiana.