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Patheon
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Patheon is a leading contract development and manufacturing organization (CDMO) in the , offering comprehensive services for , logistics, and commercial manufacturing as a division of Inc. Headquartered in , with operations spanning approximately 60 locations across 23 countries, Patheon supports companies worldwide by providing end-to-end solutions from active (API) development to biologics, cell and gene therapies, formulation, packaging, and . Founded in 1974 through a series of mergers and acquisitions, Patheon expanded significantly after its acquisition by in 2017 for $7.2 billion, integrating it into a broader that enables faster delivery of innovative therapies to patients. Patheon emphasizes , regulatory compliance, and strategic partnerships, earning accolades such as the 2025 Manufacturing Leadership Award and multiple CDMO leadership awards in 2024. Its mission aligns with 's goal of making the world healthier, cleaner, and safer by leveraging advanced technologies in small-molecule drugs, biologics, and viral vectors to address complex challenges in drug production and distribution.

History

Founding and Early Years (1974–1993)

Patheon was founded in 1974 as Custom Pharmaceuticals Ltd. in , Canada, initially operating as a small-scale focused on custom and pharmaceutical production. The company began with basic services for regional clients in , emphasizing prescription pharmaceutical products through small-batch manufacturing processes. Early operations centered on oral solid , such as tablets and capsules, alongside basic services to support local pharmaceutical needs. Throughout the , Custom Pharmaceuticals expanded its contract manufacturing capabilities, securing key milestones including its first major contracts with multinational pharmaceutical clients and maintaining strict compliance with standards for quality and safety. These efforts established a foundation in reliable, regulated production for the Canadian market. In 1990, the company marked a pivotal shift by expanding into the through the acquisition of initial contract manufacturing facilities, transitioning from primarily local Canadian operations to a broader North American presence. By 1993, Custom Pharmaceuticals rebranded as Patheon Inc. and went public on the under the PTI, raising capital to fuel further development and growth. This IPO solidified Patheon's position as an emerging player in the pharmaceutical services sector.

Expansions and Acquisitions (1994–2013)

During the and , Patheon pursued a strategy of aggressive expansion through multiple acquisitions of manufacturing facilities in , the , and , enhancing its capabilities in finished , sterile packaging, and secondary packaging operations. Notable examples include the acquisition of sites from pharmaceutical giants such as , , Hoechst, and Aventis during the , which bolstered production for oral solids and injectables. In , Patheon expanded its injectables manufacturing by purchasing a facility in from in 2001. In the , the company entered the market around 2008, establishing a key site for oral solids production. In , Patheon secured an initial foothold with sites in the UK (such as for secondary packaging) and (including ), acquired progressively through the and early to support regional contract manufacturing needs. Key acquisitions further diversified Patheon's portfolio. In 2004, Patheon acquired MOVA Pharmaceutical Corporation, a Puerto Rico-based specializing in sterile injectables and oral solids, for approximately $350 million, significantly expanding its presence in sterile . The deal, however, encountered profitability challenges due to integration issues and market conditions, prompting financial restructuring. In 2007, JLL Partners acquired a majority stake in Patheon, providing capital for further growth amid these difficulties. By 2012, Patheon strengthened its offerings with the $255 million purchase of Pharmacaps, adding expertise in soft gelatin capsules. These expansions drove substantial growth, fueled by long-term CDMO contracts with major pharmaceutical companies. Patheon's annual reached approximately $700 million by 2007 and climbed to $943 million for the 12 months ending July 31, 2013, reflecting increased demand for outsourced services. Post-acquisition integration presented challenges, particularly in and site upgrades to meet FDA standards. For instance, following the MOVA purchase, Patheon invested in facility improvements and navigated FDA inspections to secure approvals for expanded sterile production. Similar efforts were required at newly acquired European and Canadian sites to align with international regulatory requirements, ensuring seamless operations for client products. By the early 2000s, Patheon transitioned to a full-service CDMO model, integrating analytical testing, formulation development, and scale-up services alongside its core manufacturing capabilities. This evolution, supported by acquisitions, positioned the company as a comprehensive partner for pharmaceutical from development through commercialization.

Merger with DSM (2014)

In November 2013, Patheon Inc. and Royal DSM announced a $2.6 billion merger involving DSM's Pharmaceutical Products (DPP) business, aimed at creating a leading global contract development and manufacturing organization (CDMO). The transaction closed on March 11, 2014, forming DPx Holdings B.V. as a , with JLL Partners (Patheon's majority owner) holding a 51% stake and DSM retaining 49%. The merger integrated DSM's active pharmaceutical ingredient () manufacturing expertise, particularly in small-molecule drug substances, from key facilities including the site in , , for chemical production of intermediates and APIs, and the , location, which saw expansions in sterile and solid dose manufacturing capabilities. This added upstream strengths to Patheon's existing and dosage form services, enabling a more comprehensive end-to-end CDMO offering from API development to finished products. In 2016, following two years of private operation as DPx, the company rebranded to Patheon N.V. and went public through an (IPO) on the under the ticker PTHN. The IPO priced 29.8 million ordinary shares at $21 each, raising approximately $625 million and resulting in a of around $3 billion. The merger's immediate impacts included an expanded service portfolio that positioned Patheon as a full-spectrum CDMO, with fiscal 2014 revenue reaching $1.7 billion. Strategically, it combined Patheon's formulation and delivery expertise with DSM's chemical synthesis capabilities to enhance competitiveness against established players like Lonza and Catalent in the pharmaceutical services market.

Acquisition by Thermo Fisher Scientific (2017–present)

In May 2017, Thermo Fisher Scientific announced its agreement to acquire Patheon for approximately $7.2 billion, including the assumption of about $2 billion in net debt, through a tender offer of $35 per share in cash. The acquisition was completed on August 29, 2017, after Thermo Fisher acquired approximately 95.3% of Patheon's outstanding shares, with a subsequent offering period extending full ownership. This deal followed the 2014 merger with DSM that had formed Patheon as a contract development and manufacturing organization (CDMO). Following the acquisition, Patheon was integrated into Thermo Fisher Scientific's Laboratory Products and Biopharma Services segment, operating as Patheon pharma services to provide end-to-end CDMO capabilities. Under the leadership of Thermo Fisher's CEO Marc N. Casper, the integration focused on leveraging Patheon's expertise alongside Thermo Fisher's broader portfolio in laboratory equipment and diagnostics. From 2018 to 2025, Patheon expanded significantly within Thermo Fisher, particularly in advanced therapies. In 2020, Thermo Fisher invested $180 million to more than double its commercial manufacturing capacity, supporting cell and development through facilities like the one in . This included the acquisition of Novasep's viral vector business (Henogen SA) in 2021, enhancing Patheon's capabilities in viral vector technology for . By 2023, the Products and Biopharma Services segment, which includes Patheon, generated $23 billion in revenue. Further expansions included mRNA production capabilities, with a dedicated facility in Monza, Italy, receiving approval in January 2024 for RNA-based products. In July 2025, Thermo Fisher and expanded their to enable additional U.S. drug product manufacturing capacity through Patheon facilities. The acquisition enabled strategic benefits by combining Patheon's CDMO expertise with Thermo Fisher's analytical tools and diagnostics, offering clients integrated solutions from to commercial manufacturing and reducing development timelines. This synergy supported scale-up for high-demand areas, such as production, where Patheon provided fill-finish manufacturing for Moderna's starting in 2021. Recent milestones include Patheon's involvement in 14% of small-molecule new drug applications approved by the FDA in 2024 and advancements in biologics sites, such as the GMP-approved Monza facility for mRNA therapeutics. These developments underscore Patheon's role in accelerating approvals for advanced biologics and through 2025.

Business Overview

Role as a CDMO

Patheon functions as a full-service development and manufacturing organization (CDMO) within the , delivering integrated outsourced solutions from early-stage through to commercial manufacturing and supply for and pharmaceutical clients. This end-to-end approach encompasses formulation development, process optimization, support, and large-scale production, enabling clients to streamline operations and focus on core innovation. Positioned among the top global CDMOs (ranked #1 in the US) as of 2025, Patheon supports a diverse clientele including major pharmaceutical companies and biotech firms, emphasizing scalable for small molecules, biologics, and advanced therapies such as cell and therapies. Its generates revenue primarily through development fees, milestone payments tied to project achievements, and ongoing long-term contracts, contributing to Thermo Fisher Scientific's Laboratory Products and Biopharma Services segment, which reported $23.0 billion in revenue for 2023 and $23.2 billion in 2024 (as reported in early 2025), reflecting slight growth. Patheon's operations benefit from historical acquisitions that have expanded its global footprint and capabilities. Patheon maintains rigorous regulatory compliance, adhering to current good manufacturing practices (cGMP) established by the FDA, EMA, and WHO, which has supported over 128 regulatory approvals (NDAs/BLAs) from 2019 to 2023. The organization demonstrates a strong track record of reliability, achieving 99.8% on-time delivery for shipments across more than 80 countries in 2018. A key lies in Patheon's integrated , which spans approximately 60 facilities worldwide and reduces time-to-market by up to three years compared to fragmented models, according to a Tufts Center for the Study of analysis of Thermo Fisher's services. This holistic model minimizes risks, enhances efficiency, and accelerates the delivery of therapies to patients. In Q3 2025, reported overall growth of 5%, indicating continued stability in biopharma services.

Leadership and Corporate Governance

Patheon, as the pharma services division of Inc., is led by Michael (Mike) Shafer, who serves as Executive and President of Biopharma Services, overseeing Patheon's operations in and . Shafer assumed this role in April 2024, bringing extensive experience in biopharma leadership to drive strategic growth and integration within . He reports directly to Marc N. Casper, 's Chairman, President, and , ensuring alignment with the parent company's overarching objectives in scientific innovation and customer service. Key executives under Shafer include specialized leaders in , such as those managing analytical services and formulation expertise; operations, focusing on global efficiency; and compliance, enforcing regulatory standards across facilities. Corporate governance for Patheon is fully integrated into Thermo Fisher Scientific's framework, with oversight provided by the parent company's Board of Directors, which emphasizes ethical practices, risk management, and strategic direction. The Board operates through dedicated committees, including the Science & Technology Committee, which reviews advancements in pharmaceutical services and ensures alignment with industry regulations. Thermo Fisher prioritizes environmental, social, and governance (ESG) principles, with a focus on diversity and inclusion; for instance, the company has implemented structured approaches to support equitable hiring and pay decisions, enhancing representation in senior roles. Annual sustainability reports detail progress on these fronts, including commitments to human rights and ethical supply chain management, as outlined in the 2024 Human Rights and Modern Slavery Statement. Patheon's governance policies adhere strictly to the Sarbanes-Oxley Act of 2002, with Thermo Fisher maintaining robust internal controls, financial reporting certifications, and audit oversight to ensure transparency and accountability. Sustainability reporting highlights supply chain ethics, such as supplier to prevent and uphold labor standards, alongside environmental initiatives like carbon reduction targets—aiming for a 50% cut in Scope 1 and 2 emissions by 2030 and net-zero by 2050. Following the 2017 acquisition, a restructuring consolidated decision-making under Thermo Fisher's headquarters in , streamlining operations and enhancing centralized . Patheon's leadership actively engages in industry associations, notably the International Society for Pharmaceutical Engineering (ISPE), where the company contributes through participation in events, webinars on regulatory topics like virtual inspections, and member expertise in areas such as and . This involvement underscores a commitment to advancing standards and fostering collaborative innovation.

Services and Capabilities

Drug Development and Analytics

Patheon's drug development services encompass early-phase activities focused on transforming new drug candidates into viable formulations through pre-formulation and development. These services support a range of , including oral solid doses, sterile injectables, and softgels, enabling optimization of drug stability, , and for small molecules, biologics, and advanced therapies. Pre-formulation studies involve comprehensive of drug substances to identify key physicochemical properties, guiding subsequent formulation strategies. A core element of Patheon's approach is the application of (QbD) principles, aligned with ICH Q8 guidelines, to systematically design formulations that mitigate risks and enhance product quality from the outset. This methodology facilitates the use of (DoE) to explore critical quality attributes and process parameters, resulting in robust formulations with improved manufacturability and reduced variability. For instance, QbD has been employed to address challenges in amorphous solid dispersions for solid , ensuring enhanced and long-term stability. Analytical services form a foundational component of Patheon's early development offerings, providing method development, validation, and stability testing in accordance with ICH guidelines such as Q1A for stability and Q2 for validation. These services ensure compliance with regulatory standards for purity, potency, and safety, utilizing advanced techniques including high-performance liquid chromatography (HPLC) for separation and quantification, nuclear magnetic resonance (NMR) spectroscopy for structural elucidation, and mass spectrometry for detailed impurity profiling and identification. Impurity profiling, in particular, supports genotoxic impurity assessments critical for early safety evaluations. Patheon extends its support to clinical trials across Phases I through III by manufacturing small-batch clinical supplies tailored to investigational needs, including bioequivalence studies to demonstrate comparability with reference products. The company also assists in regulatory dossier preparation, such as Investigational New Drug (IND) applications and New Drug Application (NDA) modules, through programs like Quick to Clinic™, which can accelerate delivery of Phase I materials in as little as 13 months. This integrated support ensures seamless progression from development to clinical evaluation while maintaining supply chain integrity. With more than 60 global locations across 25 countries, Patheon maintains extensive analytical capabilities to handle diverse development pipelines efficiently. Innovations in , including AI-driven and modeling, enable early identification of formulation risks, such as solubility issues, thereby expediting timelines and reducing overall development costs through minimized experimental iterations.

Drug Substance Manufacturing

Patheon's drug substance manufacturing encompasses the production of active pharmaceutical ingredients (APIs) through advanced chemical synthesis and biological processes, supporting clients from preclinical stages to commercial supply. For small-molecule APIs, the company specializes in multistep chemical synthesis, including route scouting, process development, and cGMP manufacturing for complex molecules such as those used in oncology therapies. These capabilities enable production scales ranging from grams for early development to multi-ton commercial batches, with facilities equipped for handling high-potency active pharmaceutical ingredients (HPAPIs) and controlled substances under strict containment and regulatory protocols. In biologics manufacturing, Patheon employs mammalian and microbial techniques to produce monoclonal antibodies, recombinant proteins, and biosimilars, with expertise in complex formats like bispecific antibodies and Fc-fusion proteins. The company's global network includes dedicated facilities supporting upstream and downstream processes, utilizing single-use and stainless-steel bioreactors with capacities up to 12,500 liters at sites like Lengnau, , and nearly 50,000 liters at its , facility. This infrastructure facilitates scalable production for clinical and commercial needs, having supported over 240 biologics programs and manufactured 12 commercial molecules between 2019 and 2024. Process optimization at Patheon involves from laboratory to commercial scales, incorporating risk assessments, validation, and efficiency enhancements to ensure robust . The integration of () enables real-time monitoring and control, particularly in scale-up phases, achieving high success rates such as an 89% right-first-time delivery in API projects. Regulatory compliance is maintained across all sites through adherence to cGMP standards, routine inspections by authorities like the FDA and EMA, and support for Chemistry, Manufacturing, and Controls (CMC) submissions; many European facilities align with PIC/S guidelines. With five dedicated API manufacturing sites in and , and four biologics facilities worldwide, Patheon produces over 200 API and biologics projects annually, supplying more than 100 commercial products globally.

Drug Product Manufacturing and Dosage Forms

Patheon's drug product manufacturing encompasses the final assembly and formulation of active pharmaceutical ingredients into commercial , leveraging advanced technologies to ensure scalability, quality, and regulatory compliance. As a leading contract development and manufacturing organization (CDMO), Patheon integrates drug substance supply with downstream processes to produce high-volume outputs for global markets. This capability supports a diverse portfolio of pharmaceuticals, focusing on efficient production of stable, patient-friendly formats while adhering to cGMP standards. In oral solids manufacturing, Patheon specializes in tablets, capsules, and controlled-release formulations, utilizing high-speed compression, , and encapsulation lines. Technologies such as wet and dry , fluid bed processing, hot melt , and enable the production of immediate-release tablets (including dispersible, buccal, and bilayer variants), modified-release systems (like enteric-coated, osmotic, and matrix-based), and mini-tablets or pellets for multiparticulate delivery. These facilities demonstrate substantial scale, with over 13.5 billion oral dose units produced in 2024, including 7.6 billion tablets and capsules, highlighting capacities exceeding 1 billion units annually on select lines. For injectables and parenterals, Patheon provides sterile fill-finish operations for vials, prefilled syringes, and cartridges, supporting volumes from 0.5 to 500 . Liquid filling, terminal sterilization, and are complemented by lyophilization services, which optimize stability and shelf-life for biologics through customized freeze-drying cycles and thermal studies. In one year, these capabilities yielded over 130 million sterile vials, ensuring compliance with global regulatory requirements for parenteral products. Patheon's advanced delivery systems include capsules for enhanced and modified-release profiles, as well as specialized formats for s and emerging needs. production incorporates patent-protected technologies for liquid-filled and controlled-release options, with dedicated facilities capable of 10 to 12 billion units annually. Expertise in formulations addresses unique challenges like small-batch scalability and complex stability, supporting over 94 biologics projects while integrating modified-release mechanisms such as hot melt for targeted delivery. Packaging and serialization at Patheon ensure track-and-trace compliance with the U.S. Drug Supply Chain Security Act (DSCSA) and EU Falsified Medicines Directive (FMD), incorporating unique identifiers, tamper-evident features, and aggregation for integrity. Secondary packaging services facilitate global distribution, including labeling, blistering, and carton assembly tailored to regional regulations. These processes support secure, efficient of serialized products. Overall, Patheon's operations span more than 20 , delivering over 10 billion doses annually across oral solids, softgels, and steriles, providing end-to-end solutions for commercial-scale products.

Global Presence

North American Facilities

Patheon's North American facilities form a critical hub for its contract development and operations, with a concentration of sites across the and supporting , biologics, and advanced therapies production. These locations leverage proximity to major biotech clusters on the East Coast and Midwest to facilitate with pharmaceutical innovators. The network includes FDA-inspected sites equipped for commercial-scale , emphasizing compliance and in substance and product services. In the United States, the , facility serves as a key center for oral solid dose development and commercial manufacturing, offering , scale-up, and packaging capabilities for tablets, capsules, and other solid forms. This site has undergone expansions, including a $22 million investment since 2021 to enhance oral solid dose equipment and capacity, enabling production of billions of units annually. The site focuses on sterile manufacturing, including filling, lyophilization, and packaging for injectable and solid , integrated with capabilities from prior expansions in and biologics processes. It supports high-volume commercial production for parenteral products, benefiting from its location in a biotech-dense region. Patheon's St. Louis, Missouri facility specializes in biologics and development, featuring mammalian processes with single-use bioreactors scaling from development to commercial levels, including up to 2,000-liter capacities. Expanded in 2023 to reach 50,000 liters of total bioreactor volume, the site received a $50 million in 2018 to double its global biologics footprint and serves as a for single-use technology in complex biologic treatments. For advanced therapies, the facility, opened in 2022, provides dedicated manufacturing for viral vectors and mRNA technologies, spanning 290,000 square feet and supporting production with process development and scale-up services. This expansion added approximately 300 jobs and aligns with broader investments in US-based advanced therapy infrastructure. In , the site concentrates on commercial manufacturing of conventional , with specialized capabilities in sterile injectables, including filling and for parenteral products. It handles a range of sterile and non-sterile formats, supporting clinical and commercial supply chains. The , facility (encompassing operations in the greater area, including nearby ) excels in analytical services and early-phase drug product development, covering , clinical trial materials, and scale-up from pre-clinical to commercial stages. This site integrates analytical testing with development workflows to accelerate early-stage projects. Overall, North American operations account for a significant portion of Patheon's global manufacturing capacity, bolstered by Thermo Fisher Scientific's $2 billion commitment (announced in 2025) to expand facilities over the next four years, including enhancements in gene and modalities. These sites employ thousands of staff, fostering expertise in and innovation proximate to North American biotech ecosystems.

European and International Sites

Patheon's operations in and international regions form a critical part of its global network, encompassing more than 40 facilities outside within a total of over 60 sites across 23 countries. These locations support regulatory compliance with bodies such as the (EMA) for supplying the EU market, enabling seamless commercialization of pharmaceuticals. European sites emphasize specialized manufacturing in areas like active pharmaceutical ingredients (APIs), sterile products, and biologics, while international facilities in and beyond focus on clinical supply solutions and emerging market needs, enhancing . Key European hubs include the Ferentino facility in , a 14,034 m² site specializing in integrated sterile liquid and lyophilized product development and commercial manufacturing under cGMP conditions. In , the Bourgoin site serves as a for oral solid dose (OSD) development and manufacturing, with expertise in high-potency APIs and FDA/EMA approvals for both early- and late-stage production. The Linz facility in , acquired through the 2014 merger with DSM Pharmaceutical Products, focuses on synthesis and process development for clinical and commercial supplies, including intermediates under ISO standards. Other notable European sites, such as those in () for sterile dosage forms, Monza () for mRNA and steriles, and Regensburg () for APIs, provide high-containment capabilities for cytotoxics and potent compounds, ensuring safe handling and regulatory adherence. In and other international regions, Patheon maintains approximately 15 dedicated sites, including the facility for sterile fill-finish operations supporting biologics, vaccines, and therapeutics in a state-of-the-art aseptic environment. In , the sites handle clinical supply solutions in both domestic and special economic zones, catering to oral solids and demands. Facilities in , such as and , focus on clinical supply chain services, while sites in (), (), and ( for biologics) extend capabilities to the region. Latin American locations, including () and (), and the site in , provide localized clinical and packaging support to diversify global operations. European sites lead Patheon's sustainability initiatives, with several holding ISO 14001 certification for environmental management systems, including (), Ferentino and (), and (), which incorporate principles to minimize waste in and manufacturing processes. These efforts align with broader EU Green Deal objectives, promoting resource-efficient production and reduced environmental impact across international operations.

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