Mayne Pharma sells Metrics Contract Services to Catalent for $475M

Mayne Pharma is selling Metrics Contract Services to Catalent for a total cash consideration of $475 million.

Mayne Pharma will receive approximately $445 million in net proceeds after transaction costs, restructuring costs and customary closing adjustments.

Metrics Contract Services is a leading novel, potent oral solid dose CDMO based in Greenville, N.C. The business was established in the 1990s and employs more than 400 people, servicing some of the world’s leading biotech and pharma companies.

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Metrics provides a broad range of services, from drug development to commercial manufacturing, all from its facility in Greenville. Since Mayne Pharma’s acquisition of Metrics in late 2012, the business has undergone a period of transformational change to expand its footprint, potent handling capabilities and service offering, becoming a premier global end-to-end CDMO, the company said.

“I am pleased to announce the sale of Metrics, which is a key driver of the company’s transformation agenda to reposition Mayne Pharma for growth. This transaction unlocks significant value for Mayne Pharma shareholders and creates a leaner and more focused business with financial flexibility to support its strategic priorities,” Mayne Pharma’s chair Frank Condella said.

“The board believes the agreement with Catalent represents an attractive opportunity for a business which has reached maturity under Mayne Pharma’s ownership. The board wants to recognize and thank management and all employees at Metrics for their efforts in building this exceptional business over the past 10 years,” he said.

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“This acquisition will further expand Catalent’s ability to meet our customers’ expectations in fast-growing areas of the business and patient need,” said Aris Gennadios, Catalent’s group president of pharma and consumer health segment.

“The experienced team and consistently improved, state-of-the-art facility in Greenville will provide Catalent’s customers with immediate, fit-for-scale capacity for in-demand highly potent drugs and other oral solid small-to-mid-size batch needs,” he said. “This capacity is particularly important for customers with R&D pipelines featuring accelerated orphan and rare disease programs for oncology, and other important therapeutic areas.”