Patheon Nabs Mexican Beachhead with $255M Banner Buyout

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"Drugmakers from big pharma to much smaller companies have been striking partnership deals with companies in South America and other emerging markets—and buying up drugmakers and consumer health companies—to capture a share of that growth."

Everyone who's anyone is growing in emerging markets these days. And contract drugmaker Patheon won't be left out. The company is buying Mexico's gelatin capsules-and-coatings company Banner Pharmacaps for $255 million, not only for the drug delivery technology, but for broader access to the Latin American market.

The way Patheon sees it, the deal puts it in the middle of Banner's customer network in the private-label drug business. "(Banner) expands our geographic presence," CEO James Mullen told Reuters. "It gives us. . .a direct-to-market business in Mexico and some of the other Latin American countries."

Like other drugmakers, Patheon figures that South America and other fast-growing emerging markets offer more opportunity than stagnant North America and Europe. . .View Full Article

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