Patheon and Novartis Reach Agreement

On April 30, 2001, Patheon Inc., a leading independent provider of pharmaceutical manufacturing and development services, completed its agreement with Novartis Pharmaceuticals Canada Inc. to provide long-term manufacturing and supply services to Novartis and its affiliates. Patheon also purchased Novartis’s pharmaceutical manufacturing facility in Whitby, Ontario. Patheon financed the transaction through debt facilities with HSBC Canada. Revenues from the long-term manufacturing supply contracts are expected to be approximately $300 million over five years. The purchase price for the manufacturing facility and related inventories was $34.5 million.

Patheon’s legal team was led by its General Counsel, Riccardo Trecroce, with assistance from Davies Ward Phillips & Vineberg LLP. The Davies team consisted of Cam Rusaw, David Thomson, Steven Szentesi (corporate), Derek Vesey (banking), John Ulmer, Ian Crosbie (tax), Sarah Powell (environmental) and Sabrina Gherbaz (real estate). On employment and pension matters, Patheon was represented by Cheryl Elliott, Susan G. Seller and Donna Walwyn of Baker & McKenzie. Novartis and its affiliates were represented by McMillan Binch. The McMillan Binch team was led by John A. Paterson, Sr., and included Jeff Francis, Lydia Wakulowsky and Claudette Pennesi (corporate), Bruce McWilliam (information technology), David Wentzell and Susan Nickerson (pension/benefits/tax), David Elenbaas and Darryl Hiscocks (employment), John Fox (real estate), Michael Peterson (environmental) and Neil Campbell (competition). Renate Herbst, John McGowan and David Redmond of Cassels Brock & Blackwell LLP acted on behalf of HSBC Canada.