Lonza sets sights on Canadian drug firm

Swiss drug industry supplier Lonza has launched a bid to buy the Canadian pharmaceutical company Patheon for around SFr488 million ($460 million).

This content was published on August 21, 2009 - 10:36

Under details of the offer announced on Friday Basel-based Lonza intends to acquire Patheon's restricted voting shares at a price of $3.55.

"With Patheon, Lonza would be in a unique position to offer its customers manufacturing capability across the complete supply chain," said Lonza CEO Stefan Borgas.

Patheon said the offer was a "significant improvement in value" compared with an earlier offer of $2 per share by the United States-based investment firm JLL Partners, and was an "excellent opportunity" to secure the company's future development.

Lonza has signed a confidentiality and standstill agreement with Patheon that is effective until September 30. The transaction is subject to Lonza's investigations into the company and approval by both firms' boards of directors.

In July Lonza announced its first-half year net profit had plummeted by more than 50 per cent compared with the same period last year but said it would continue to drive growth initiatives through strategic investments. and agencies

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