Patheon plans to restructure its network of six pharmaceutical manufacturing facilities in southern ON, Canada as part of its strategy to focus on developing and manufacturing prescription pharmaceutical products and to improve profitability.
The company plans to divest its Niagara-Burlington Operations business, which is focused on the manufacturing of over-the-counter (OTC) products, with facilities in Fort Erie and Burlington Gateway and the commercial operations at Burlington Century. The sale will include the assets, including equipment, facilities and land. Third-party contracts will be assigned to the purchaser, subject to client approval. It is anticipated that the purchaser will assume responsibility for the commercial manufacturing staff at all three locations. The company plans keep its leased Burlington Century facility where its central quality control lab is based.
To improve capacity and profitability of the remaining Canadian sites, Patheon plans to transfer all commercial production and development services at its York Mills site in Toronto to its site in Whitby, Ontario, and some production to its Mississauga and Cincinnati sites. Following completion of this process, expected to take approximately two years, the company plans to close its York Mills facility and sell the land and building at this location.
"This initiative represents a significant step forward in our strategy to improve the profitability of our business," said Riccardo Trecroce, chief executive officer, Patheon. "Our objective is to focus our resources and capital on the development and manufacture of prescription pharmaceutical products which represent higher-margin revenues, while also improving capacity utilization and operational effectiveness at our sites."
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