Emergent BioSolutions has entered into a definitive agreement to acquire PaxVax, which is majority owned by an affiliate of Cerberus Capital Management, L.P. The acquisition, subject to customary closing conditions, is expected to close in 4Q18.

The agreement will create a focus on infectious diseases through the development and commercialization of novel specialty vaccines, while ensuring uninterrupted supply of Vaxchora and Vivotif.

PaxVax has capabilities across R&D, manufacturing and commercial operations that expand Emergent’s core business. The combined company will support the development of more vaccines in areas of significant unmet need, with a commitment to addressing emerging and stubborn global health threats. 

PaxVax marketed assets include Vaxchora, the only U.S. FDA approved vaccine for protection against cholera, a disease caused by Vibrio cholerae serogroup O1, and Vivotif, an oral vaccine for typhoid fever that is currently licensed in 27 countries.

“We are very pleased to unite two companies with a shared mission — protecting civilian and military populations with innovative vaccines addressing a broad range of public health threats,” said Nima Farzan, chief executive officer and president of PaxVax. “Bringing together PaxVax’s rich portfolio of commercialized vaccines and robust pipeline of vaccines for diseases including adenovirus and chikungunya, with Emergent’s global capabilities will create the world’s largest independent specialty vaccine company.” 

“PaxVax provided a compelling opportunity for us to partner with a talented management team and help scale a leading specialty vaccine platform in a large unmet market,” said Brett Ingersoll, head of Global Private Equity and Senior Managing Director of Cerberus. “Since our investment in 2015, PaxVax has accelerated its financial performance as well as achieved significant operational accomplishments, including the launch of its second product. PaxVax has been a successful investment for Cerberus, generating strong returns for our investors, and is consistent with our long and positive track record of investing in the pharmaceutical sector. We are confident PaxVax will continue its great momentum as part of Emergent.”