Hepalink USA, the wholly owned U.S. subsidiary of Shenzhen Hepalink Pharmaceutical, will acquire the biopharmaceutical contract development manufacturing organization Cytovance® Biologics for $205.68 million cash plus additional contingent payments, Cytovance said today.
The deal adds a CDMO to Hepalink’s U.S. portfolio, which includes Scientific Protein Laboratories (SPL), a global supplier of active pharmaceutical ingredients (APIs). Hepalink and SPL together are one of the largest suppliers of heparin sodium API worldwide.
Cytovance specializes in cGMP production of therapeutic proteins and antibodies from mammalian cell culture, microbial fermentation, transgenic processes, and small-scale “flex suite” programs.
Cytovance also offers process development services, cell-line development, purification development, stability testing, and regulatory support services, all from its Oklahoma City facilities. Hepalink plans to retain Cytovance’s management and its 178 employees in the U.S.
“Hepalink will accelerate the realization of its strategy in the global macromolecule biopharmaceutical space. Cytovance will have the resources to expand its manufacturing capabilities, enhancing its ability in late stage clinical drug production and commercial business,” Li Li, Hepalink’s chairman and CEO, said in a statement. “We are very impressed with Cytovance's top-tier leadership team and will entrust this team to lead the future growth of the company.”
Cytovance added its own expansion plans will be accelerated as a result of Hepalink’s acquisition. Those plans include the addition of 5,000L and 10,000L mammalian reactors and 1,000L and 5,000L microbial fermenters, as well as increased analytical capabilities, process development and process characterization capabilities.
“This will expand our ability to develop and grow both our domestic and international businesses and to secure our current expansion plans in our Oklahoma City facilities,” added Cytovance President and CEO Darren Head. “We do not anticipate any changes in how we currently do business. We will become part of a very successful company that shares our commitment to safety and quality.”
Hepalink USA agreed to acquire 100% of the equity interest of Cytovance®. Upon consummation of the acquisition, Hepalink will hold 100% of the equity interest indirectly through Hepalink USA. The deal is expected to close in October following regulatory approval, at which point Cytovance® Biologics Inc. will become a fully consolidated subsidiary of Hepalink USA.
Established in 1998, Hepalink is publicly-traded on the Shenzhen Stock Exchange, and based at Shenzhen High-Tech Park.
