Six months after its IPO, Durham contract drug manufacturer Patheon is rolling in profits and scouting acquisition prospects.
The company said Tuesday that fourth-quarter revenue was up 10.4 percent to $510.2 million, operating income was up 24.4 percent to $70.3 million, and net income from continuing operations was up 8.1 percent to $44.1 million. Patheon’s fiscal year ends Oct. 31.
The company said it has locked in on 85 percent of next year’s revenue through long-term contracts, and predicted 10 percent revenue growth for the year. Patheon executives said they company signed 470 new business deals in 2016 as pharmaceutical companies continue to outsource their drug manufacturing operations.
“The levers of our business really are consumption of pharmaceuticals,” Patheon president Michel Lagarde told analysts Tuesday. “And we feel pretty good that the trends that really drive our business all show pretty positive indicators.”
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Patheon is prospecting for acquisitions that make strategic and financial sense, executives said. The company has done five deals in the last four years and on Nov. 28 announced the acquisition of a manufacturing site in Florence, S.C. The deal is expected to close in February.
Patheon employs about 8,000 people worldwide, including about 150 in Durham. The company’s shares closed at $28.11, down 40 cents on Thursday, and have never fallen below their July initial offering price of $21.