Merck will acquire Avecia Biologics from the Avecia group through its affiliate Merck Sharp & Dohme. Avecia Biologics is a contract manufacturing organization with specific expertise in microbial-derived biologics. Financial details of the transaction were not disclosed.

“At Merck we continue to execute on our strategy of expanding our biopharmaceutical expertise and manufacturing capacity,” said John T. McCubbins, senior vice president, Biologics and Therapeutic Protein Operations, Merck Manufacturing Division. “This transaction follows an initial strategic development and supply relationship with Avecia Biologics and will provide us with an operational facility staffed by an experienced workforce that is highly skilled in a broad portfolio of bioprocess systems.”

Merck will acquire Avecia Biologics Limited and all its assets, including all the company’s process development and scale-up, manufacturing, quality and business support operations located in Billingham, UK. In addition to honoring all Avecia Biologics contractual commitments, Merck “plans to engage in discussions with individual customers relating to their specific ongoing and future biological process development and manufacturing needs after the transaction is closed,” according to a company statement.

“Over the past 10 years, Avecia Biologics has built and established an enviable reputation for bioprocess development and timely delivery of quality biopharmaceutical ingredients for our customers,” said Steve Bagshaw, president, Avecia Biologics. “This acquisition recognizes these successes and now provides the exciting opportunity to focus on advancing Merck’s broad early and mid-stage portfolio of biologic candidates.”

Closing of the transaction is subject to regulatory approval, as well as other customary closing conditions. The Oligomedicines business of the Avecia group based in the U.S. does not form part of this transaction.