Pharmaceutical company Zydus Lifesciences on Tuesday announced plans to acquire US-based clinical-stage immune-oncology company, Agenus Inc, as a strategic pivot into the global biologics contract development and manufacturing organization (CDMO) business.
Under this agreement, Zydus will acquire two biologics manufacturing facilities from Agenus, located in Emeryville and Berkeley, California for an upfront consideration of USD 75 million and a contingent payment of USD 50 million to be paid over three years, subject to the achievement of certain revenues. This acquisition will enable Zydus to leverage supply chain dynamics and a favourable environment to expand its reach in the US and globally.
In a media release, Zydus’s Managing Director (MD), Sharvil Patel said, “The acquisition will give Zydus a strategic foothold in the U.S. for biologics manufacturing in the global hub for biotech innovation, California. It will enhance our ability to partner with innovation-centric entities, advancing new products and prioritizing patient-centric solutions. This move strengthens our long-term biologics vision and positions us to better serve the evolving needs of the global biopharmaceutical industry.”
The CDMO business will operate as an independent entity from Zydus and will house the two acquired manufacturing facilities. Additionally, Zydus has obtained exclusive licensing contract manufacturing rights for the clinical and commercial supply of two Phase-3 ready immune-oncology products, Botensilimab (BOT) and Balstilimab (BAL), In India and Sri Lanka. The company will also have the first right of negotiation to manufacture any of the future pipeline products developed by Agenus.
Zydus will also be responsible for the clinical development and regulatory approvals of licensed products in these territories and will pay 5% royalty on net sales upon the successful approval and commercialization of the products, per the agreement.
Addressing the licensing partnership, Patel said, “Our licensing partnership with Agenus aligns with Zydus’ overarching biologics vision and our aim to advance novel solutions for high-unmet need areas. Agenus’ robust pipeline and research in immuno-oncology along with Zydus’ reach as the largest Indian oncology player, is a significant step forward in our collective fight against cancer. We are confident that this collaboration will bring transformative therapies to patients who need them most, in India and Sri Lanka markets.”
