Contract drug manufacturer Patheon (TSX:PTI) has won two contracts valued at $18 million to make experimental type 2 diabetes drugs for German pharmaceutical company Boehringer Ingelheim.

Research Triangle Park-based Patheon provides contract manufacturing for drugs that are commercialized as well as for those still in research and development. Patheon said the two three-year Boehringer projects are for fixed-dose combination drugs in development for the treatment of type 2 diabetes.

“I am very gratified that Boehringer Ingelheim recognizes our expertise in formulating, scaling and successfully launching complex formulations such as these molecules,” Patheon President of Pharmaceutical Development Services and Chief Scientific Officer Mark Kontny said in a prepared statement.

Patheon last month announced a reorganization that will consolidate some of its European and North American operations to cut costs. The changes include moving its European headquarters from Zug, Switzerland, to the United Kingdom.

While the reorganization means the closing of some facilities in Europe and Canada, Patheon has identified its pharmaceutical development services business, or PDS, as a growth opportunity. This business unit provides manufacturing for drugs that are still in R&D, such as the Boehringer diabetes drugs in today’s contract announcement. Currently, commercial manufacturing makes up the vast majority of Patheon’s business. Of the company’s $671 million in fiscal 2010 revenue, PDS comprised just $125.9 million

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