Patheon Inc. > Investor Relations

Company Profile

Patheon is a leading publicly listed provider of drug development and manufacturing services to global pharmaceutical, biotechnology and specialty pharmaceutical companies. Exclusively focused on outsourcing, Patheon’s strategic vision is to become the industry’s best provider of pharmaceutical development and manufacturing services.

Services

Patheon’s global manufacturing network includes more than 4,700 employees providing services at 10 manufacturing facilities in North America and Europe: three in the United States, three in Canada and four in Europe.

Through its well-recognized Pharmaceutical Development Services group, Patheon is able to assist its customers in bringing their drug candidates from pre-clinical stages through to clinical trials, the NDA approval process and, if approved, commercial manufacturing. Patheon’s development and commercial manufacturing capabilities cover primarily prescription (R_x) products in solid, semi-solid and liquid dosage forms, as well as specialized capabilities in high-potency, cephalosporin, controlled/sustained release and sterile manufacturing, including aseptic filling and lyophilization.

Market Opportunity

The pharmaceutical industry is growing and, compared with other industries, is in the early stages of adopting manufacturing and development outsourcing strategies. Many global pharma, biotech and specialty pharma companies are relying on the services of contract product development and commercial manufacturing companies to help them meet growing demand and bring new drugs to market more quickly.

Patheon is an established leader in this relatively new segment of the pharmaceutical industry. With a wide range of manufacturing capabilities and significant scale in the world’s two largest pharmaceutical markets – the United States and Europe -- Patheon is uniquely positioned to serve as a strategic global manufacturing partner to the industry’s leading innovators.

Patheon serves more than 270 clients, including all of the world’s 20 largest pharmaceutical companies, (such as sanofi-aventis, Novartis, Roche, and Merck); ten of the 20 largest biotechs (such as Amgen and Gilead Sciences) and nine of the 20 largest specialty pharmaceutical companies, (such as Watson Pharmaceuticals and Medicis).

Financial Highlights

(US$ millions, except per share amounts)       2007   2006 2005 2004

Revenues⁽¹⁾
      677.1
674.7 658.9 432.9

EBITDA before repositioning expenses⁽²⁾        90.3 70.9 94.0 49.8

Earnings (loss) from continuing operations      (84.5)⁽⁷⁾
(288.7)⁽⁶⁾
19.7⁽⁵⁾ 9.5⁽⁴⁾

EPS⁽³⁾ (diluted) U.S. cents from continuing operations

      ($0.91)⁽⁷⁾

($3.11)⁽⁶⁾

23¢⁽⁵⁾
19¢⁽⁴⁾

Shareholders’ equity       197.2   250.7 539.9 221.4

^{⁽¹⁾Reflects results for continuing operations.
⁽²⁾Earnings from continuing operations before repositioning expenses, asset impairment charges, depreciation and amortization, foreign exchange loss on foreign operations reclassified from other comprehensive income, interest, refinancing expenses, write-off of deferred financing costs and income taxes.
⁽³⁾Earnings (loss) per share.
⁽⁴⁾Including after-tax expenses of $3.1 million or 6 cents per share in fiscal 2004 relating to a repositioning plan at Patheon’s facility in Swindon, United Kingdom.
⁽⁵⁾After one-time gain of $3.0 million, or 3.5 cents per share after tax from the sale of land at the Bourgoin-Jallieu site in France, and write-off of deferred financing costs of $1.3 million, or 1.5 cents per share after tax.
⁽⁶⁾Including after-tax repositioning expenses of $11.4 million or 12 cents per share and an asset impairment charge of $252.1 million or $2.71 per share.
⁽⁷⁾ Including after-tax repositioning expenses of $14.9 million or 16 cents per share and an asset impairment charge of $47.8 million or 51 cents per share.}

Stock Price (as at January 31, 2008)
(Stock prices in Canadian dollars)

Stock Symbol                  (TSX: PTI)

Share price                    C$3.40

Shares outstanding                 90,624,388

Market capitalization C$308.1 million (~US$307.0 million)

Average weekly trading volume                 1,318,788

52-week high/low              C$5.45/C$2.85