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Catalent's Brazilian acquisition supports global softgel strategy

By Dan Stanton+

10-Oct-2013

Catalent has continued its softgel expansion in emerging markets with the acquisition of Relthy Laboratórios in Brazil.

Earlier this year, Catalent Pharma Solutions boosted its drug delivery business by acquiring the Chinese softgel producer Zhejiang Jiang Yuan Tang Biotechnolgy Company . Yesterday the firm announced it is expanding its South American operations, purchasing 100% of the shares of Indaiatuba, Brazil-based Relthy.

“South America is an important region for Catalent strategically, where we have a long established presence with softgel facilities in Argentina [Buenos Aires] and Brazil [Sorocaba] supplying domestic customers,” Elliott Berger, VP Global Marketing & Strategy at Catalent, told this publication.

“Continued growth in the consumer health segment, particularly in Brazil, makes the region an important one for Catalent and has led to this acquisition, significantly increasing our capabilities to better serve local customers and consumers.”

Relthy’s workforce of 350 produces approximately two billion capsules annually for prescription and over-the-counter drugs, as well as Vitamin, Mineral and Supplement (VMS) products - a new market area for Catalent to enter into.

China, Brazil and Emerging Markets

The acquisitio - of which financial details have not been divulged - adds an eleventh softgel facility to Catalent’s worldwide network and comes just two months after the firm received regulatory approval for the Chinese purchase.

On top of the softgel facility, Catalent “invested in a brand new facility for clinical trial supplies, developing an empty warehouse into the first full service clinical supply operation by a global company in China,” according to Berger.

“Emerging markets represent a growing and increasingly important segment for Catalent,” Berger said, adding the challenge lies in providing the same quality and supply in these regions as Catalent does in its more established markets.

He said: “This strategy led us to carefully select softgel manufacturing facilities in China and Brazil and we intend to spend significant resources in the next few years to expand their capabilities, standards and regulatory approval footprint.”

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