Jabil Acquires Pharmaceutics International, Inc. (Pii)

Rhea-AI Summary

Jabil (NYSE: JBL) has successfully acquired Pharmaceutics International, Inc. (Pii), a contract development and manufacturing organization (CDMO), on February 3, 2025. Pii's facilities in Hunt Valley, Maryland, span over 360,000 square feet across four sites, featuring over 70 manufacturing rooms specializing in aseptic filling, oral solid dose production, and handling high potency compounds.

The acquisition enhances Jabil's Pharmaceutical Solutions portfolio by adding Pii's capabilities in drug development, clinical trials, and product commercialization. Pii brings expertise in aseptic filling, lyophilization, and oral solid dose manufacturing, complementing Jabil's existing strengths in parenteral drug delivery systems like auto-injectors and inhalers.

Through this acquisition, Pii gains access to Jabil's global infrastructure, automation capabilities, and supply chain efficiencies, while Jabil expands its pharmaceutical manufacturing capabilities and enters the CDMO market.

Positive

• Expansion into CDMO market with comprehensive pharmaceutical manufacturing capabilities
• Addition of 360,000 square feet of state-of-the-art GMP facilities
• Enhanced product portfolio with aseptic filling and oral solid dose manufacturing capabilities
• Strategic complement to existing parenteral drug delivery business
• Access to new revenue streams in drug development and clinical trials

Negative

• None.

Insights

Financial Analyst

This strategic acquisition marks Jabil's significant entry into the high-growth CDMO market, positioning the company as a comprehensive end-to-end solutions provider in the pharmaceutical sector. The integration of Pii's specialized capabilities, particularly in aseptic filling and oral solid dose manufacturing, creates substantial cross-selling opportunities with Jabil's existing auto-injector and drug delivery device business.

The timing is particularly strategic given the explosive growth in the GLP-1 market, where Jabil already maintains a strong position in delivery devices. The addition of Pii's manufacturing capabilities allows Jabil to capture more value across the pharmaceutical supply chain, potentially increasing margins and recurring revenue streams.

The acquisition brings several key advantages:

• Four state-of-the-art GMP facilities totaling 360,000 square feet
• Over 300 skilled team members and scientific expertise
• Specialized capabilities in high-potency compounds and hormones
• Enhanced ability to support clinical trials and commercial production

This vertical integration positions Jabil to benefit from the pharmaceutical industry's increasing preference for simplified supply chains and single-source partnerships. The deal should accelerate growth in Jabil's healthcare segment, which has been a strategic focus area. While financial terms weren't disclosed, the acquisition's strategic value lies in its potential to capture larger portions of pharmaceutical manufacturing budgets and strengthen relationships with major healthcare clients.

Healthcare Industry Analyst

This acquisition represents a calculated move into the rapidly expanding CDMO market, which is experiencing significant growth driven by increased outsourcing of pharmaceutical manufacturing and the rise of complex biologics. Pii's specialized capabilities in aseptic filling and lyophilization are particularly valuable given the industry's shift toward injectable biologics and complex drug formulations.

The deal's strategic importance is amplified by several industry trends:

• Growing demand for specialized manufacturing capabilities in biologics and high-potency compounds
• Increasing complexity in drug development and manufacturing requirements
• Rising need for integrated development and manufacturing solutions
• Shift toward single-source partnerships in pharmaceutical manufacturing

Pii's state-of-the-art facilities and expertise in handling high-potency compounds position Jabil to capture market share in specialized drug manufacturing segments. The combined entity offers pharmaceutical companies a comprehensive solution spanning drug development, clinical trials and commercial manufacturing, potentially reducing time-to-market and supply chain complexity for clients.

The acquisition of Pii, a science-driven contract development and manufacturing organization (CDMO), complements Jabil’s existing pharmaceutical solutions, enabling comprehensive support for customers in drug development, clinical trials, and product commercialization at scale.

ST. PETERSBURG, Fla.--(BUSINESS WIRE)-- Jabil Inc. (NYSE: JBL), a global leader in engineering, manufacturing, and supply chain solutions, today announced the successful acquisition of Pharmaceutics International, Inc. (Pii), a contract development and manufacturing organization (CDMO) specializing in early stage, clinical, and commercial volume aseptic filling, lyophilization, and oral solid dose manufacturing, completed February 3, 2025.

Pii's four state-of-the-art manufacturing facilities in Hunt Valley, Maryland, include dedicated space for aseptic filling, oral solid dose production, and handling high potency compounds and hormones. (Photo: Business Wire)

“As the pace of healthcare innovation accelerates, pharmaceutical companies need partners who can help them scale rapidly with a focus on quality and safety. Jabil and Pii’s combined capabilities can provide end-to-end support for pharmaceutical customers, offering one safe, trusted pair of hands to simplify their entire supply chain,” said Mike Mahaz, SVP, Global Business Units, Healthcare, at Jabil.

Jabil is a leader in parenteral drug delivery, in support of markets like GLP-1s. This acquisition will significantly enhance Jabil’s existing Pharmaceutical Solutions offering, which includes the development and commercial production of auto-injectors, pen injectors, inhalers, and on-body pumps. With the addition of Pii’s leading scientific insights, depth of product knowledge, and capabilities across aseptic filling, lyophilization, and oral solid dose manufacturing, Jabil can meet the clinical and commercial drug manufacturing demands of healthcare customers.

“Jabil is very pleased to announce this acquisition. With our shared commitment to creating the best solutions possible for patients around the world, we believe the addition of Pii’s capabilities, supported by over 300 team members, is a perfect fit for Jabil and our customers,” said James O’Gorman, Vice President, Pharmaceutical Solutions, at Jabil. “The convergence of Jabil’s and Pii’s complementary capabilities will bolster Jabil's customer offering and support business growth potential as we enter the CDMO market.”

Founded in 1994, Pii’s footprint has grown to over 360,000 square feet across four sites on a single campus in Hunt Valley, Maryland. Pii’s state-of-the-art Good Manufacturing Practice (GMP) facilities contain over 70 manufacturing rooms, including containment suites for handling high potency compounds and hormones, dedicated manufacturing suites for oral products (e.g., soft gels), an aseptic facility for injectables (e.g., vials, syringes, and cartridges), a formulation development center, and analytical and microbiology laboratories. This expertise will add a comprehensive portfolio of pharmaceutical development and manufacturing services to Jabil’s current healthcare solutions.

By joining Jabil, Pii gains access to an expanded global infrastructure, cutting-edge automation, and enhanced supply chain efficiencies, enabling even greater responsiveness and innovation for their pharmaceutical partners.

“This acquisition marks an exciting new chapter for Pii. We look forward to leveraging Jabil’s extensive expertise to accelerate our mission of delivering best-in-class drug development and manufacturing solutions to our customers and ultimately the patients we serve,” said John Fowler, President and CEO at Pii.

“On behalf of our board and fellow shareholders at Athyrium Capital Management, Hildred Capital and Pharmascience Inc., I want to thank our management and staff for their splendid work in building the Company over the past several years,” said James Gale, Chairman of Pii and managing director of Signet Healthcare Partners. “Jabil is the perfect owner to continue the momentum of the business. With their resources and capabilities, we believe our customers and employees will be well served going forward.”

For more information, please visit https://www.pharm-int.com/.

About Jabil:

At Jabil (NYSE: JBL), we are proud to be a trusted partner for the world's top brands, offering comprehensive engineering, manufacturing, and supply chain solutions. With over 50 years of experience across industries and a vast network of over 100 sites worldwide, Jabil combines global reach with local expertise to deliver both scalable and customized solutions. Our commitment extends beyond business success as we strive to build sustainable processes that minimize environmental impact and foster vibrant and diverse communities around the globe. Discover more at www.jabil.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250204436085/en/

Investor Contact

Adam Berry

Senior Vice President, Investor Relations and Communications

adam_berry@jabil.com

Media Contact

Timur Aydin

Senior Director, Enterprise Marketing and Communications

publicrelations@jabil.com

Source: Jabil, Inc.

FAQ

What are the key assets Jabil (JBL) acquired from Pharmaceutics International?

Jabil acquired four state-of-the-art manufacturing facilities in Hunt Valley, Maryland, totaling 360,000 square feet with over 70 manufacturing rooms, including capabilities for aseptic filling, oral solid dose production, and handling high potency compounds.

How will the Pii acquisition impact Jabil's (JBL) pharmaceutical business?

The acquisition enhances Jabil's pharmaceutical solutions by adding capabilities in drug development, clinical trials, and product commercialization, while enabling entry into the CDMO market.

When did Jabil (JBL) complete the Pii acquisition?

Jabil completed the acquisition of Pharmaceutics International, Inc. (Pii) on February 3, 2025.

What manufacturing capabilities does the Pii acquisition add to Jabil (JBL)?

The acquisition adds capabilities in aseptic filling, lyophilization, oral solid dose manufacturing, and handling of high potency compounds and hormones.

How many employees does Pii bring to Jabil (JBL)?

Pii brings over 300 team members to Jabil's operations.