TORONTO — Drugmaker Patheon Inc. (TSX:PTI) is selling its over-the-counter manufacturing business in Ontario's Niagara-Burlington region for $5.75 million to Pharmetics Inc. of Laval, Que.
Pharmetics is a privately owned contract manufacturer of vitamins, herbal products, supplements and over-the-counter pharmaceutical products.
Under the sales deal, Pharmetics will acquire Patheon's operations in Fort Erie and Burlington, Ont., and continue employing the entire workforce of about 250.
Subject to third-party contracts, the firm will continue to manufacture and supply all the products currently made at those sites, which serve 14 clients buying about 60 over-the-counter pharmaceutical products in a range of dosage forms, including tablets, liquids and powders.
''Once the decision was made to seek a buyer for our over-the-counter business, we had three key priorities: continuity of service for our clients, continuity of employment for our staff, and the sale of the facilities to a purchaser who could capitalize on the strategic value of these assets,'' said Patheon's outgoing CEO Riccardo Trecroce.
The sites will ''provide Pharmetics with conveniently located, high-quality capacity and expertise with which to expand our business and serve our growing client base,'' said Ephriam Kandelshein, co-president of Pharmetics.
The sale is expected to be completed by Jan. 31, subject to various conditions and approvals.
Toronto-based Patheon has 14 factories in the United States, Canada and Europe, employing more than 5,100 people and serving more than 250 pharmaceutical and biotechnology companies.