Therapure Biopharma announces spin off and sale of CDMO business
Therapure Biopharma announced that a joint venture between 3SBio, a global biotechnology company, and CPE Funds (investment funds advised by CITICPE) has entered into an agreement to acquire Therapure’s contract development and manufacturing (CDMO) business and certain rights to plasma products and technology for the Chinese market for $290 million, subject to certain adjustments.
The CDMO business will continue to operate under the Therapure brand and be led by Therapure’s CEO Nick Green and the current senior management team at its manufacturing facilities located in Mississauga, Ontario. The Catalyst Capital Group Inc. (“Catalyst”) will retain ownership of, and will support future investments in, Therapure’s plasma protein and therapeutic products business under a separate entity (ProductsCo). The joint venture between 3SBio and CITICPE will contribute at least an additional C$20-25 million to ProductsCo under the terms of the agreement to be used for the construction of a new commercial facility.
This new relationship with 3SBio and CITICPE provides the CDMO business access to greater mammalian cell and downstream purification manufacturing capabilities and a broader geographic reach. In addition, it also provides strategic support for the expansion of the CDMO business and facilities, providing employees and stakeholders with greater opportunities in Canada.
This transaction will also form a strategic partnership between Catalyst, 3SBio and CITICPE. Operationally the CDMO business will continue to produce clinical material with the team’s leading expertise in plasma proteins manufacturing in the existing facilities and will construct a new commercial facility on behalf of ProductsCo for the manufacture of its plasma proteins commercial portfolio. This transaction allows ProductsCo to focus on the clinical development and commercialization of its plasma proteins products in high growth markets, initially in the US and Canada. In addition, it leverages 3SBio's knowledge and expertise in commercializing Therapure’s PlasmaCap EBA technology in the Chinese market.
"This transaction is exciting for the future of Therapure and for the Canadian biopharma industry," said Nick Green, President and Chief Executive Officer of Therapure. "It will be a powerful enabler for further growth and expansion of both 3SBio and Therapure in high growth areas of the market through our combined capabilities. This will put us in a stronger position to lead, innovate and grow, and further support our current and future clients."
"Therapure is a business that we started from scratch and through a focused corporate strategy and discipline we have built the leading Canadian biomanufacturing operator and established a great product pipeline that is entering a new value creation stage as an independent company,” said Gabriel de Alba, Chairman of Therapure and Managing Director and Partner at Catalyst. “We are very excited about the ongoing business and investment relationship with 3SBio and CITICPE and look forward to product commercialization in China and to jointly expanding manufacturing capabilities in Canada and globally with 3SBio and CITICPE as new partners. For the products business, which we believe is also a high growth opportunity, we are focused on the next stage of value creation through strategic alternatives that, among other options, may include an initial public offering."
"As part of our global expansion strategy, the addition of Therapure’s CDMO business represents an important milestone for 3SBio and we look forward to working with the talented and experienced Therapure CDMO team to further expand the business in Canada, North America, and elsewhere," said Dr. Jing Lou, Chairman and CEO of 3SBio. “The collaboration with Therapure’s CDMO business is exciting and we expect to create significant technological, operational and revenue synergies between 3SBio and Therapure’s CDMO business.”
Following 3SBio shareholders' approval, the acquisition is expected to be completed by the end of this year.