The Special Committee of Independent Directors of Patheon Inc. (TSX:PTI) and Lonza Group AG (SIX:LONN) today announced the extension until October 15, 2009 of the exclusivity and due diligence period to allow for continued discussions regarding the previously announced non-binding proposal to acquire all of the outstanding restricted voting shares of the Company at a price of US$3.55 per share as well as other possible strategic transactions.
The extension allows Lonza to continue to conduct its related confirmatory due diligence and is in accordance with the terms of the existing confidentiality and standstill agreement between Lonza and Patheon announced on August 21, 2009. Other terms remain unchanged, including that Patheon will not negotiate an acquisition transaction with any other party but can respond to an unsolicited acquisition proposal, subject to certain restrictions.
The Lonza proposal does not commit either party to complete any transaction. The transactions contemplated by the Lonza proposal remain subject to Lonza being satisfied with the completion of its confirmatory due diligence, the parties entering into definitive documentation, and the approval of each party’s Board of Directors. There can be no assurance that any such transaction will be completed or as to the terms of any such transaction.
Lonza is one of the world's leading suppliers to the pharmaceutical, healthcare and life science industries. Its products and services span its customers’ needs from research to final product manufacture. Lonza is the global leader in the production and support of active pharmaceutical ingredients both chemically as well as biotechnologically. Biopharmaceuticals are one of the key growth drivers of the pharmaceutical and biotechnology industries. Lonza has strong capabilities in large and small molecules, peptides, amino acids and niche bioproducts which play an important role in the development of novel medicines and healthcare products. Lonza is a leader in cell-based research, endotoxin detection and cell therapy manufacturing. Lonza is also a leading provider of value chemical and biotech ingredients to the nutrition, hygiene, preservation, agro and personal care markets.
Lonza is headquartered in Basel, Switzerland and is listed on the SIX Swiss Exchange. In 2008, Lonza had sales of CHF 2.937 billion. Further information can be found at www.lonza.com.
Patheon Inc. (TSX:PTI; www.patheon.com) is a leading global provider of contract development and manufacturing services to the global pharmaceutical industry. Patheon prides itself in providing the highest quality products and services to more than 300 of the world's leading pharmaceutical and biotechnology companies. Patheon's services range from preclinical development through commercial manufacturing of a full array of dosage forms including parenteral, solid, semi-solid and liquid forms. Patheon uses many innovative technologies including single-use disposables, Liquid-Filled Hard Capsules and a variety of modified release technologies.
Patheon's comprehensive range of fully integrated Pharmaceutical Development Services includes pre-formulation, formulation, analytical development, clinical manufacturing, scale-up and commercialization. Patheon can take customers direct to clinic with global clinical packaging and distribution services and Patheon's Quick to Clinic™ programs can accelerate early phase development project to clinical trials while minimizing the consumption of valuable API.
Patheon's integrated development and manufacturing network of 10 facilities, and seven development centers across North America and Europe, strives to ensure that customer products can be launched with confidence anywhere in the world.
Caution Concerning Forward-Looking Statements
This news release may contain forward-looking statements which reflect management's expectations regarding the Company's future growth of operations, performance (both operational and financial) and business prospects and opportunities. These statements are made in the context of the risks and uncertainties that are outlined in the Company's public documents, which can be accessed on our website at www.patheon.com or on SEDAR at www.sedar.com.
This press release does not constitute an offer to buy or the solicitation of an offer to sell restricted voting shares of Patheon Inc. Lonza Group AG has not yet commenced, and may not commence, the proposed offer described herein. Should Lonza Group AG commence an offer, it will only be made pursuant to an offer to purchase and related materials to be filed with Canadian securities regulators and distributed to shareholders of Patheon Inc. You should read these documents if and when they become available because they will contain important information about any such offer.
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