Zydus Enters Global Biologics CDMO to Boost Innovative Therapies
By acquiring the biologics contract development and manufacturing organization (CDMO) facilities located in the US from Agenus Inc., Zydus Lifesciences Ltd., along with its subsidiaries and affiliates, announced its entry into the worldwide biologics CDMO market.
With this acquisition, Zydus makes a strategic investment in biologics manufacturing in the US, giving the company a new source of long-term growth.
The goal of clinical-stage immuno-oncology startup Agenus Inc. is to create immunological treatments that successfully fight cancer.
According to the agreement, Zydus will pay $75 million up front and $50 million over the course of three years, contingent on reaching a specific revenue milestone, to acquire two cutting-edge biologics manufacturing facilities from Agenus in Berkeley, California (US) and Emeryville.
Through this transaction, Zydus gains immediate access to cutting-edge biologics manufacturing capabilities and forges a significant foothold in California, a major hub for biotechnology worldwide.
With this calculated action, Zydus may take advantage of favorable geopolitical conditions and supply chain dynamics to increase its market share both domestically and internationally.
As a result of this acquisition, Zydus will now be able to provide comprehensive solutions for all aspects of biologics development, including pre-clinical, toxicology, clinical, and manufacturing.
Zydus will place the acquired manufacturing capabilities under its CDMO company, which will function independently. The facilities are equipped with a skilled professional team that has the necessary industry knowledge and strong skills to provide top-notch biologics development and manufacturing services to multinational biotech and pharmaceutical firms.
Zydus will become Agenus's only contract manufacturer as part of the deal, and it will deliver clinical and commercial manufacturing services for two Phase-3-ready immuno-oncology medicines, Botensilimab (BOT) and Balstilimab (BAL). Additionally, Zydus will have the first say in negotiations to produce any pipeline items that Agenus develops in the future. Zydus plans to grow the team even more, support the local economy, and assist generate new jobs in the area.
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The increased complexity of treatments, the emergence of biologics in clinical pipelines, and the rise in new biotech firms without internal manufacturing capacity are all contributing factors to the substantial expansion of the worldwide biologics CDMO industry.