End To End

Abstract

In 2009, when Lonza made a bid to acquire Patheon, a contract manufacturer of drugs in final dosage form, industry watchers shook their heads and said, “Nope.” Such an acquisition didn’t make sense, given the fundamental differences between Lonza’s main business, the manufacture of active pharmaceutical ingredients (APIs), and Patheon’s production of finished drugs. Many viewed it as a step too far in a trend, heating up at the time, of API manufacturers adding service components to their business via acquisition. And, sure enough, the deal fell through. Last November, however, a successful deal was struck between Patheon and the Dutch chemical company DSM. The two formed a new firm, DPx, consisting of DSM Fine Chemicals, Patheon, and Banner Life Sciences, a manufacturer of over-the-counter drugs that Patheon acquired in 2012. The combination seems less surprising than when Lonza proposed its version of it four years ago. Any eyebrows raised ...