Repligen Buys Novozymes Biopharma Sweden for $22.7M
Acquisition will double Repligen’s manufacturing capacity and add native Protein A product to portfolio.!--h2>
Repligen is buying Novozymes' Biopharma Sweden business for €17 million (about $22.7 million) in cash, plus future potential milestones totaling another €4 million (roughly $5.6 million). Novozymes Biopharma specializes in the manufacture and supply of growth factors used in mammalian cell culture and Protein A affinity ligands used in monoclonal antibody production. Its products are sold primarily under long-term supply agreements with the major life science companies.
The firm operates a 45,000 sq. ft. cGMP production facility in Sweden, which Repligen says will effectively double its manufacturing capacity. The products acquired through the Novozymes transaction are expected to generate some $16–17 million in revenues during 2011. The combined company is expected to
generate total revenues of approximately $50 million in fiscal year 2013.
"Earlier this year we announced our strategic objective to transition into a commercially focused company, and the acquisition of the Novozymes business will deliver on that goal by significantly augmenting our product portfolio and providing a path to sustainable profitability,” states Walter C. Herlihy, Repligen president and CEO.
Repligen already supplies four different forms of recombinant Protein A, and the Novozymes acquisition will expand its portfolio to include "native" Protein A. As part of the acquisition of the Novozymes’ business, Repligen has extended the terms of an existing supply agreement for recombinant Protien A, from 2014 to 2021. The Novozymes takeover will in addition provide Repligen with four cell culture supplements or growth factors, including Long®R3 IGF-I, Long®-EGF, Long® TGFα, and recombinant transferrin.