Repligen to buy Novozymes Biopharma Sweden
Creates leading supplier of products for manufacturing biologic drugs
Repligen is to buy Novozymes Biopharma Sweden in a deal that will include a 45,000ft2 protein manufacturing facility as well as established product lines with long-term customers including EMD Millipore, Sigma-Aldrich and GE Healthcare.
Novozymes Biopharma Sweden’s products include various forms of Protein A, which is fundamental to the production of monoclonal antibodies and growth factor products used in the large-scale fermentation of cells.
The Waltham, MA, US-based firm will pay €17m ($22.7m) in cash immediately and up to €4m ($5m) in contingent milestone payments. The deal is expected to close by the end of the year.
Repligen says Novozymes Biopharma Sweden is an ideal strategic fit with its current biomanufacturing supply business and will immediately double its product revenue and provide a ‘path to profitability in FY2013’.
The combined company is expected to generate total revenues of approximately $50m in fiscal year 2013.
The Novozymes Biopharma acquisition also diversifies and expands Repligen’s product offering and customer base while doubling its manufacturing capacity to approximately 6,000 litres and providing the opportunity to manufacture under cGMP. It will make Repligen a leading supplier of both native and recombinant forms of Protein A, a critical component for biologic manufacturing.
Novozymes Biopharma is located in Lund, Sweden and operates a c-GMP production facility, which was renovated in 2008 with an investment of around $25m.
‘This acquisition positions Repligen as a leading producer of high value, consumable products that will directly benefit from the long-term growth of the biologics market,’ said Walter Herlihy, president and chief executive of Repligen.
‘Earlier this year we announced our strategic objective to transition into a commercially focused company, and the acquisition of the Novozymes business will deliver on that goal by significantly augmenting our product portfolio and providing a path to sustainable profitability.’
As part of the acquisition, Repligen and GE Healthcare have extended the term of their existing supply agreement for recombinant Protein A from 2014 to 2021.
‘A further key benefit of the acquisition is Repligen’s expansion into the cell culture ingredients market, which increases our product breadth and opens a market opportunity for us in the production of fermentation ingredients and a future market opportunity as stem and cell-based therapies emerge,’ added Herlihy.
Novozymes Biopharma produces insulin-like growth factor, native and recombinant Protein A products, and other growth factors which have potential applications in cell based therapies.
The combined company will operate two independent manufacturing sites with the potential to manufacture products at both locations, thereby increasing efficiency and security.