Hepalink USA to acquire Cytovance Biologics
Hepalink investment will give Cytovance the opportunity to develop both its domestic and international businesses and to secure its plans to expand its Oklahoma City facilities
Cytovance Biologics, a leading biopharmaceutical contract development manufacturing company, has entered into a definitive agreement to be acquired by Hepalink USA. The addition of Cytovance Biologics to Hepalink USA and its parent company Shenzhen Hepalink Pharmaceutical, adds a leading biologics contract development and manufacturing organisation(CDMO) to its current USA portfolio, which also includes Wisconsin-based Scientific Protein Laboratories.
Hepalink's investment will accelerate Cytovance's expansion plans, which include the addition of 5,000L and 10,000L mammalian reactors and 1,000L and 5,000L microbial fermentors as well as increased analytical capabilities, process development and process characterisation capabilities.
'We are excited about this transaction and what it means for Cytovance,' said Darren Head, President and Chief Executive Officer of Cytovance. 'This will expand our ability to develop and grow both our domestic and international businesses and to secure our current expansion plans in our Oklahoma City facilities. We do not anticipate any changes in how we currently do business. We will become part of a very successful company that shares our commitment to safety and quality.'
'This acquisition represents an exciting opportunity for Hepalink, Cytovance and its employees, and Cytovance's customers' added Li Li, Chairman and Chief Executive Officer of Hepalink. 'Hepalink will accelerate the realisation of its strategy in the global macromolecule biopharmaceutical space. Cytovance will have the resources to expand its manufacturing capabilities, enhancing its ability in late stage clinical drug production and commercial business.'
Under terms of the stock purchase agreement, Hepalink USA has agreed to acquire Cytovance Biologics for US$205.68m in cash plus certain contingent payments. Hepalink's wholly owned US subsidiary, Hepalink USA, will acquire 100% of the equity interest of Cytovance Biologics. The transaction is expected to close in October following regulatory approval. When the transaction is completed, Cytovance management will remain in place, as will its 178 employees in the US.