Drug discovery and development company Scynexis Inc. has completed an asset purchase agreement with Avista Pharma Solutions for the sale of its contract research and development services business. The sale of the contract services business includes a novel screening platform and technology utilized by leading animal health companies, and GMP API, process chemistry and analytical service offerings to customers on a fee-for-service basis.

In connection with the sale of the contract research and development services business, Scynexis will relocate to Jersey City, NJ effective August 1, 2015. Additionally, Scynexis founder and president Yves Ribeill has stepped down from his position as the company’s president though will continue to serve on the company’s board.

“SCY-078 is a novel antifungal born out of the Scynexis contract research and development services business’ drug discovery capabilities and shows great potential as a treatment for invasive and treatment-resistant fungal infections,” said Marco Taglietti, chief executive officer, Scynexis. “This transaction with Avista Pharma will allow us to divest the services business in order to strategically focus our resources on the clinical development of this promising compound and further advance the field of antifungals.”

“The acquisition further expands our capabilities in cGMP drug development and manufacturing services and establishes an immediate presence with global clients in the animal health marketplace,” said Patrick Walsh, chief executive officer, Avista Pharma Solutions. “This marks our second investment in less than 60 days and adds immediate technical capabilities, a world class scientific team, and a 90,000 square foot facility to further expand our operations.”

Avista will occupy Scynexis’s former research and GMP manufacturing facility in Durham, NC and hire substantially all employees associated with the contract services business.

Avista Pharma acquired the Longmont, CO-based chemistry, manufacturing and controls business of Array BioPharma Inc. in June 2015, and is a subsidiary of Accuratus Lab Services. Accuratus is a portfolio company of Ampersand Capital Partners, a healthcare-focused private equity firm based in Wellesley, MA.

“The acquisition of the Scynexis contract services business is another important step in our effort to build a differentiated player in the CDMO industry,” said David Parker, general partner, Ampersand. “We are excited about the opportunity to expand the solid franchise that the Scynexis team has built with major animal health clients. And we see clear synergy opportunities between Avista’s Longmont and Durham operations to help solve the difficult synthesis and manufacturing scale-up challenges faced by new drug sponsors.”