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Patheon Inc. could sell for more than C$780 million in a takeout, said an analyst. On Sept. 11, the C$490 million market cap drug development outsourcing firm announced it formed a special committee, which retained RBC Capital Markets and Greenhill & Co. as advisors.
The market pushed Patheon's shares up 14% to C$5.66 on the news, and the next day, the shares rose another 5% to C$5.99. At press time, the stock traded at C$5.07 per share.
Mississauga, Ontario-based Patheon contracts with pharmaceutical and biotechnology companies to manufacture and develop drugs. The C$700 million-in-2005 revenue company's clients include Merck & Co. Inc., Novartis AG, Amgen Inc., Gilead Sciences Inc. and Medicis Pharmaceutical Corp. Patheon operates four facilities in the U.S., six in Canada and four in Europe. In December 2004, Patheon purchased Puerto Rico-based MOVA Pharmaceutical Corp. for US$350 million, or 8.55 times EBITDA. That multiple would value Patheon at C$838...