Patheon, which provides outsourced contract drug manufacturing and development services, filed on Monday with the SEC to raise up to $100 million in an initial public offering. However, the deal size is likely a placeholder for an IPO that we estimate could raise $700 million.
Patheon had been publicly traded on the Toronto Stock Exchange until 2013, when JLL Partners and Dutch materials and life sciences company DSM bought it for $1.4 billion. In connection with the acquisition, DSM combined its own pharmaceuticals business with Patheon, JLL invested $400 million for future acquisitions and management contributed $90 million.
Competitor Catalent (CTLT) raised $871 million in a July 2014 US IPO; the stock broke issue on the first day but now trades over 40% above its offer price.
The Amsterdam, Netherlands-based company, which was founded in 1974 and booked $1.9 billion in sales for the 12 months ended January 31, 2015, plans to list under the symbol PTHN. It has not selected an exchange. J.P. Morgan, Morgan Stanley, Jefferies and UBS Investment Bank are the joint bookrunners on the deal. No pricing terms were disclosed.
