Catalent said today that it launched an underwritten public offering for $250 million of its common stock to fund, in part, its $950 million purchase of biologics manufacturer Cook Pharmica.
In connection with the offering, Catalent is slated to grant underwriters a 3o-day option to buy up to $37.5 million of additional shares of common stock.
The drug-delivery company noted that the offering is not contingent upon its Cook Pharmica deal closing and that if the acquisition doesn’t close, it plans to use the offering’s net proceeds for general corporate purposes.
Cook Pharmica, a unit of privately-held medical device maker Cook Group, is a contract manufacturer that develops biologics-based drug compounds.
The acquisition, which was announced earlier this month, readies Catalent for an expansion of its biologics biz. Catalent will have access to Cook Pharmica’s Indiana-based facility after it closes the deal in the fourth quarter, the company said.
According to the deal, Catalent will pay $750 million when the deal closes. The rest of the payment will come in four annual installments. In its last fiscal year, Cook Pharmica reeled in $179 million in revenue, Reuters said.
See the best minds in medtech live at DeviceTalks Boston on Oct. 2.
