Merck & Co., Inc. Selects Patheon as Strategic Supplier

31-Jan-2006

Patheon Inc. announced that Patheon has entered into a five-year master supply agreement with Merck & Co., Inc. to provide commercial manufacturing and pharmaceutical development services to Merck, and that Merck has selected Patheon as one of Merck's strategic partners for commercial manufacturing and pharmaceutical development services.

The new master supply agreement is designed to facilitate the inclusion of additional products and projects as Merck implements a new strategic plan, which includes leveraging external capabilities and capacity. As a strategic partner for Merck, Patheon will be provided the opportunity to participate in future commercial manufacturing and appropriate product development projects.

Merck has awarded Patheon three new projects as the first step in this new relationship. One project is a late-stage development product for Patheon's Caguas, Puerto Rico, facility. A second project involves activity at Patheon's Cincinnati facility and a third project involves activity at Patheon's Toronto Regional Operations in Mississauga, Canada. These projects are expected to generate commercial revenues for Patheon in fiscal year 2007, if regulatory approvals for these products are obtained within the planned timelines. Patheon is currently providing development services in connection with these projects.

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