Thermo Fisher Scientific Inc. agreed to buy Dutch drug-ingredients maker Patheon NV for $5.2 billion, extending the acquisition binge that helped turn it into one of the world’s biggest manufacturers of diagnostic and testing equipment.
Thermo Fisher's offer of $35 per share represents a 35% premium over the stock's previous closing price. The deal is expected to close by the end of the year and add 30 cents per share to Thermo Fisher's bottom line in the first year.
Thermo Fisher already had a developing and strong position in clinical trial manufacturing and now expands that arm into drug manufacturing, which is likely to highlight its growing presence in the market of bioproduction and bioprocessing,
Leerink analysts wrote in a client note.
The transaction is expected to be completed by the end of 2017 and will immediately add to Thermo Fisher's adjusted profit by 30 cents in the first full year after close.
Patheon will bring the ability to make not just any medicines, but the more complex and harder to produce type grown out of living cells. Such biological therapies are increasingly important to drugmakers facing intense competitive pressure. Meanwhile, innovative companies that have pioneered biological therapies are increasingly turning to contractors to help manage costs or make production more efficient.