Zydus Lifesciences plans to acquire Nasdaq-listed clinical-stage immuno-oncology firm Agenus’s two biologics manufacturing facilities in California, U.S. for $125 million to enter the global biologics contract development and manufacturing organization (CDMO) business.
The move enables it to leverage supply chain dynamics and a favourable geopolitical environment to expand reach in the U.S. and globally.
The facilities in Emeryville and Berkeley will be acquired for an upfront consideration of $75 million and contingent payment of $50 million, to be paid over three years subject to achievement of certain revenue milestone. Zydus said the acquisition, through a subsidiary, will provide access to advanced biologics manufacturing capabilities and establish a key presence in the leading global biotechnology hub of California.
Also as a part of the transaction Zydus will become an exclusive contract manufacturer for Agenus and provide manufacturing services for clinical and commercial supply of two identified Phase-3 ready immuno-oncology products, Botensilimab (BOT) and Balstilimab (BAL).
Zydus will also have first right of negotiation to manufacture any of the future pipeline products developed by Agenus.
Create jobs, spur local economy
With the acquisition Zydus will become a one stop solution provider across the entire development spectrum of biologics, from pre-clinical to toxicology studies, clinical development to manufacturing. Zydus said it intends to further expand the team and help create new jobs in the region and contribute to the local economy.
Zydus’ CDMO business will operate as an independent entity and will house the acquired manufacturing capabilities. “The acquisition will give Zydus a strategic foothold in the U.S. for biologics manufacturing in the global hub for biotech innovation, California. It will enhance our ability to partner with innovation-centric entities, advancing new products and prioritizing patient-centric solutions,” MD Sharvil Patel said.
In a parallel development, Zydus Lifesciences has entered into a definitive agreement with Agenus Inc. to secure exclusive commercial rights for India and Sri Lanka for BOT and BAL.
