Zydus Lifesciences has created a new biologics contract development and manufacturing organisation (CDMO) business.
Following the creation of this CDMO faction, Zydus will also acquire two of immuno-oncology specialist Agenus' US-based biologics CMC facilities, allowing it to serve the key North American market.
This includes two Californian facilities situated in Emeryville and Berkeley, which will set the company back USD $75m upfront.
Zydus will also be subject to a contingent payment of $50m following the achievement of certain revenue milestones during the next three years.
This acquisition will provide the new CDMO immediate access to advanced biologics manufacturing capabilities, while establishing its presence in California — a popular biotechnology hub.
Zydus will now cover the entire development spectrum of biologics, from pre-clinical to toxicology studies, clinical development and manufacturing.
As part of the transaction, Zydus will become an exclusive contract manufacturer for Agenus, providng clinical and commercial supply of Botensilimab and Balstilimab, two Phase III-ready immunotherapeutics.
The companies have also agreed that Zydus will have first right of negotiations to manufacture any future pipeline products developed by Agenus.
"The acquisition of Agenus' two Californian biologics manufacturing facilities will give Zydus a strategic foothold in the US, while cementing our position in the global hub for biotech innovation."
"It will enhance our ability to partner with innovation-centric entities, advancing new products and prioritising patient-centric solutions. This move strengthens our long-term biologics vision and positions us to better serve the evolving needs of the global biopharmaceutical industry."
Zydus' entry into the CDMO market comes at a time when the sector is experiencing significant growth — primarily driven by the increasing complexity of therapies, the rise of biologics in clinical pipelines and the lack of internal manufacturing capabilities possessed by emerging biotech companies.
According to market.us, the Global Biologics CDMO Market Size is expected to be worth around $85bn by 2034, growing at a CAGR of 15.7% between 2025 to 2034.
As demand surges for reliable, agile and scalable partners, Zydus' entry into this space positions it to tap into significant long-term growth opportunities and support innovation across the global biopharmaceutical landscape.