Patheon in new Roche agreement

The Italian subsidiary of Toronto-based drug development and manufacturing services provider Patheon has entered into a new manufacturing services agreement with Roche S.p.A. to continue to supply Roche with solid, liquid and sterile products for the European market. The new agreement will commence on January 1, 2004 for an initial term of three years, with annual renewal provisions thereafter. Revenues are estimated to be approximately C$40m (€25.2m) in the first year and C$60m (€37.8m) over the next two years of the initial term of the agreement.

The new agreement contemplates that Roche will rationalise certain of its products or transfer them to a facility within its network. At the time of the acquisition of the Monza facility - Patheon's first European venture - the existing manufacturing and supply agreement with Roche represented virtually all of the revenues for its Italian operations. Today, Patheon Italia serves more than 16 clients at its two Italian facilities in Monza and Ferentino, and employs 494 people .

'Our Monza facility has served as the platform for the growth of our capabilities in Monza, and subsequently in Ferentino,' said Robert Tedford, ceo, Patheon. 'We are pleased we will continue to be considered a key supplier of Roche products.'