Strategic acquisition
Patheon explains the importance of mergers and acquisitions as the company strengthens its position in the sector.
Under the leadership of CEO James Mullen, Patheon has transformed into a leading global provider of high-quality drug development and delivery solutions to the pharmaceuticals and biopharma sectors. This transformation was based on a four-pronged business strategy: strengthen the core operations, sell the business differently, enter logical adjacencies and drive industry consolidation.
Mergers and acquisitions are an important component of Patheon’s strategy to bolster our leadership position. During the transformation we have posted both organic and inorganic growth, thanks in part to five successful M&A transactions, all aimed at helping us expand our strategic capabilities around the globe to address growing customer needs.
While assessing strategy and developing long-term objectives in 2014, Patheon’s active pharmaceutical ingredient (API) business team learned that many small to mid-size pharma companies are based in the US and prefer to have development work (Clinical Phase I-III) completed geographically closer to home. This led to the company’s most recent acquisition – in March 2015 - of Florence, SC-based IRIX Pharmaceuticals, a recognised leader in API development and manufacturing services for drugs in all phases of pharmaceutical development and commercialisation. IRIX provides North American API process development and manufacturing services, helping to address customers’ interests with manufacturing capabilities closer to their operations.
The IRIX acquisition, based on our business strategy of entering logical adjacencies, supports Patheon’s effort to deliver an integrated solution to customers of all sizes. The deal supports Patheon OneSource integrated offering, and together the companies boast an array of cutting edge technologies, regulatory support and API sourcing services that address a broad range of supply chain issues for customers.
Having brought five companies into the Patheon network in a short timeframe, the company has developed a robust and structured formula that allows for seamless transition among employees, customers and suppliers. Integrations are led by experienced teams that place strong emphasis on employee communications, transparency and alignment with the company’s unified global culture. Patheon’s global culture has five key aspects:
1) provide industry-leading customer experience;
2) be the highest quality, most efficient and flexible provider;
3) deliver the best technical and scientific solutions to enhance product value;
4) create a culture of engagement, accountability and a commitment to excellence in all that we do; and 5) operate our business in a compliant, safe, disciplined, responsible and ethical fashion.
This hands-on approach to culture has been well-received and adopted by Patheon’s more than 8,000 global employees, a large number of whom came to the company through our M&A activity.
Patheon is focused on changing how development and manufacturing services are delivered to pharmaceutical companies, creating exceptional value for customers while also enhancing the company’s leadership position in the CDMO industry. Throughout the Patheon organisation, there is a remarkable focus on providing value to customers, who increasingly demand simplified supply chains and a wider range of services.