To support Patheon’s strategy to build comprehensive development and manufacturing capabilities, the company recently acquired an API manufacturing facility in Florence, SC, from Roche Holdings, Inc., and has also entered into a multi-year supply arrangement with Roche.
 
The 300,000 sq.-ft. facility has manufacturing capacity for API ranging from development to manufacturing services, expanding the company’s capacity for manufacturing highly potent compounds and adding capabilities to support solid-state chemistry, micronization, and eventually, commercial spray drying.
 
The site has reactors ranging from 50 -11,000 liters producing multiple products simultaneously, and is compliant with regulations, such as cGMP safety and environmental standards. It will provide Patheon with a major U.S. API operation to support products from clinical scale to commercial manufacturing.
 
Patrick Glaser, senior vice president of small molecule API at Patheon, provides insight into this recent acquisition. –KB
 
 
Contract Pharma: What were the main drivers for purchasing this facility from Roche?
 
Patrick Glaser: The acquisition aligns with Patheon’s comprehensive M&A strategy to acquire global pharmaceutical development and manufacturing facilities to support expanding client needs. The Florence, SC manufacturing site complements Patheon’s existing locations and furthers Patheon’s vision to deliver the broadest integrated offering of active pharmaceutical ingredients (API) and finished dose (FD) products for clients in key regions around the world. This is an example of how Patheon is transforming as part of an effort to create new business models that provide outstanding service to clients.
 
CP: Would you characterize this as a capability move or a geographic one?
 
PG: The addition of the site in Florence brings both unique capability and geographic advantages. We gain much needed manufacturing capacity for API, in particular for highly potent compounds, while also expanding our presence in the U.S., further complementing our network of global sites.
 
Once the acquisition is finalized, we will have three sites in the U.S. All of which will enhance our capacity to meet our clients’ needs and expand capabilities. 
 
CP: Can you provide any details regarding the supply agreement with Roche?
PG: The deal includes a multi-year supply agreement for the Roche products that are currently produced at the Florence site. Patheon will continue to produce these products for Roche.
 
The agreement will help to ensure continuity in the supply of high quality products, which is good for Patheon, Roche, our partners and patients.
 
CP: What sort of client base or provider deals are you looking to pursue?  
 
PG: We will continue to serve a broad range of clients from major global pharmaceutical companies to mid-size pharma as well as the growing segment of start-up companies. 
 
CP: What are some of the services that you’ve added with acquisition? 
 
PG: We will gain approximately 200 skilled professionals to support small and large-scale API production, expand capabilities in solid state chemistry, including a center of excellence for micronization and future spray drying. The site also enhances our analytical capabilities and our ability to handle highly potent compounds.
 
CP: What’s the immediate vision for this site, and what’s Patheon’s future outlook? 
 
PG: The deal is expected to close within 60 days, and Patheon will execute its comprehensive integration playbook—the result of an aggressive M&A strategy over the last five years—to quickly and seamlessly assimilate the site and employees into our global network. Upon closing we will immediately begin transferring products to fill the available capacity at the site while leveraging the newly gained competency in solid state chemistry and HPAPI.
 
Patheon is singularly focused on driving continuous improvement and superior quality in all that we do. The acquisition of the Florence site further enhances our abilities to meet our clients’ supply chain needs.
 
CP: Is Patheon looking at other regions or services to add?
 
PG: We have a history of making strategic acquisitions, and intend to continue to take advantage of opportunities going forward in small molecule formulation and production, as well as parenteral and biologics facilities. Geographically, we’d like to expand our footprint in Europe where we’d like to strengthen our oral solid dose capacity.
 

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Patrick Glaser, senior vice president for Patheon’s small molecule API business, is responsible for leading the transformation and expansion of the company’s API service offering in Europe and North America. He has more than 20 years of experience in the pharmaceutical industry, and earned a degree in economics from Fairleigh Dickinson University in New Jersey. Prior to joining Patheon, Glaser worked at Novasep Groupe as president and CEO and, most recently, was vice president of sales and marketing for Teva Pharmaceutical Industries. Glaser was previously a member of the board of directors of the Drug Chemical and Associated Technologies Association (DCAT).