Zydus Lifesciences Ltd. plans to enter the global biologics contract development and manufacturing organization (CDMO) business by acquiring Agenus Inc.’s U.S.-based biologics CMC facilities.

This acquisition marks Zydus’ strategic investment in U.S.-based manufacturing for biologics thereby adding a sustainable growth driver for the group. Agenus Inc. is a clinical-stage immuno-oncology company committed to developing immune therapies that effectively combat cancer.

Under the terms of the agreement, Zydus will acquire two biologics manufacturing facilities from Agenus in Emeryville and Berkeley, California for an upfront consideration of $75 million and contingent payment of $50 million to be paid over three years subject to achievement of certain revenue milestone.

This acquisition provides Zydus immediate access to advanced biologics manufacturing capabilities and establishes a key presence in California, a leading global biotechnology hub. This strategic move also enables Zydus to leverage supply chain dynamics and a favorable geopolitical environment to expand its reach in the U.S. and globally. With this acquisition Zydus will now become a one stop solution provider across the entire development spectrum of biologics, right from pre-clinical to toxicology studies, clinical development and now manufacturing.

Zydus’ CDMO business will operate as an independent entity and will house the acquired manufacturing capabilities. The facilities come with an experienced professional team with strong capabilities and requisite industry expertise to deliver high-quality biologics development and manufacturing services to global biotech and pharmaceutical companies. As a part of transaction Zydus will become an exclusive contract manufacturer for Agenus and will provide manufacturing services for clinical and commercial supply of two identified Phase-3 ready immuno-oncology products, Botensilimab (BOT) and Balstilimab (BAL). Zydus will also have first right of negotiation to manufacture any of the future pipeline products developed by Agenus. Zydus intends to further expand the team and help create new jobs in the region and contribute to the local economy.

“The acquisition will give Zydus a strategic foothold in the U.S. for biologics manufacturing in the global hub for biotech innovation, California. It will enhance our ability to partner with innovation-centric entities, advancing new products and prioritizing patient-centric solutions,” said Dr. Sharvil Patel, Managing Director, Zydus Lifesciences Ltd. “This move strengthens our long-term biologics vision and positions us to better serve the evolving needs of the global biopharmaceutical industry.”

Other Pharma Industry Acquisitions

Check out Contract Pharma’s Pharmaceutical Industry Mergers & Acquisitions Roundup.