Mood is bright at new drug ingredients show

Abstract

Attendees at CPhI North America, the new U.S. iteration of a popular European pharmaceutical ingredients trade show, found the sector in continued exuberance. Investment has marched on, especially in the U.S., as contract development and manufacturing firms respond to demand for more capacity. And most firms reported significant sales growth. But discussion at the event, held in Philadelphia from May 16–18, was dominated by news of two acquisitions: Thermo Fisher’s plan to acquire the drug services firm Patheon for $7.2 billion (see story above) and Novacap’s agreement to buy control of the French drug ingredients maker PCAS in a deal that values PCAS at more than $250 million. Many were puzzled by the combination of Thermo Fisher, a major supplier of laboratory instruments, and Patheon. Others, though, saw the emergence of a huge “one-stop-shop” for the drug industry through the combination of Thermo Fisher’s clinical delivery business and Patheon’s manufacturing