Zydus Lifesciences Ltd. announced on Tuesday that it will acquire two US-based biologics manufacturing facilities of Agenus Inc. for $75 million or Rs 642 crore.
Zydus will acquire the two state-of-the-art biologics plants in Emeryville and Berkeley in California with a contingent payment of up to $50 million over three years, subject to the achievement of certain revenue milestones, according to a statement.
The acquisition will provide Zydus an entry into the global biologics contract development and manufacturing organisation or the CDMO business and will provide immediate access to advanced manufacturing capabilities in California. "This strategic move enables Zydus to leverage supply chain dynamics and a favourable geopolitical environment to expand its reach in the US and globally," the statement said.
Zydus will become an exclusive contract manufacturer for Agenus and will provide manufacturing services for the clinical and commercial supply of two identified Phase-3 ready immuno-oncology products, Botensilimab and Balstilimab.
The company will also have the first right of negotiation to manufacture any of the future pipeline products developed by Agenus.
Currently in advanced clinical trials, Botensilimab/Balstilimab have demonstrated significant clinical activity across nine cancer types in more than 1,200 patients, including both late-stage and neoadjuvant settings, the company said.
Zydus' CDMO business will operate as an independent entity and will house the acquired manufacturing capabilities, the statement said.
The global biologics CDMO market size is expected to be worth around $85 billion by 2034, growing at an annual rate of 16%.
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