New global CDMO combines capabilities and expertise of Patheon and DSM Pharmaceutical Products
DPx Holdings has been established as a global contract development and manufacturing organisation (CDMO) following a US$2.6bn joint venture between private equity firm JLL Partners of the US and Royal DSM of the Netherlands.
DPx is 51% owned by JLL Partners and 49% by Royal DSM.
With headquarters in Durham, North Carolina, US, DPx’s global footprint includes 24 locations across North America, Europe, Latin America and Australia, employing more than 8,000 people.
Formerly known by its provisional name of NewCo, DPx is the corporate parent of a group of business units that comprises three distinct brands focused on pharmaceutical services, fine chemicals and products and proprietary technologies. These units are the result of combining DSM Pharmaceutical Products (DPP), Patheon and Banner Life Sciences, acquired by Patheon in October 2012.
Combining the capabilities and experience of Patheon and DPP immediately positions us as the industry’s partner of choice
Under the structure of the new DPx business, pharmaceutical services will operate under the Patheon brand name and include the commercial manufacturing (CMO) capabilities, pharmaceutical product development services (PDS) as well as Biosolutions and Biologics (Bio) businesses of DPP.
Fine chemicals, or the ES/IM and active pharmaceutical ingredients (API) businesses, will operate under the DSM Fine Chemicals brand name.
Proprietary products and technologies will operate under the Banner Life Sciences brand name.
Patheon is the industry’s end-to-end supplier providing an integrated supply chain model to customers. The company delivers a full spectrum of pharmaceutical development and manufacturing services ranging from active pharmaceutical ingredients (API), Biologics and Biosolutions, as well as pharmaceutical product development services (PDS) and commercial manufacturing (CMO) capabilities. Additionally, DSM Fine Chemicals will handle complicated APIs and finished dosage forms, while Banner Life Sciences will offer its own proprietary and nutraceutical products.
'This is an exciting day for our customers and employees. We believe that combining the capabilities and experience of both Patheon and DPP immediately positions us as the pharmaceutical industry’s partner of choice,' said Jim Mullen, CEO of DPx.
'Today we are better positioned to add scale, new value chain capabilities and technologies, as well as expand our end-to-end service offerings to our customers as a global, comprehensive solution provider to the industry.'
DPx’s 2014 sales are anticipated to be about $2bn (pro-forma).
'We are thrilled to announce the close of this landmark deal,' said Paul Levy, Managing Director of JLL Partners. 'It is the result of much hard work and strategic foresight and is a demonstration of how we increase value through investment in growth and market positioning.'