Partnering, Pharma

Royal DSM and JLL form a new pharma firm

Posted on 20 November 2013

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JLL Partners and Royal DSM have announced a collaboration to form a new pharma company.

The company will be a leading global contract development and manufacturing organization (CDMO) for the pharmaceutical industry with anticipated sales of around USD 2 billion.

NewCo will have an end-to-end offering from finished dosage (drug products) to active substances (APIs) and a global footprint of 23 locations across North America, Europe, Latin America and Australia with about 8,300 employees.

It will be 51% owned by JLL and 49% by DSM.

The name of the pharma company (provisionally called NewCo) will be announced in the coming months

NewCo will be formed by combining DSM’s business group DSM Pharmaceutical Products with Patheon.

NewCo will be a leading global contract development and manufacturing organization with anticipated 2014 sales of about USD 2 billion.

NewCo will add scale and new value chain capabilities/technologies to expand its end-to-end service offering as a comprehensive solution provider to the industry.

NewCo will operate as an independent standalone company.

JLL will contribute USD 489 million in cash to NewCo.

DSM will contribute DSM Pharmaceutical Products (DPP) and receive a seller note of USD 200 million, thereby valuing DPP at USD 670 million.

View the full article at Bloomberg (link no longer available)

For further deal information visit Current Agreements (subscription required)

 

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