Repligen acquires Novozymes business for $23 million
Repligen has acquired the business of Novozymes Biopharma Sweden in a cash $22.7 million and future potential milestone payments of $5.6 million. This acquisition will elevate Repligen to a world-leading supplier of products for manufacturing biologic drugs with the potential to yield sustainable growth and profitability in fiscal year 2013, beginning April 1, 2012. The combined company is expected to generate total revenues of approximately $50 million in fiscal year 2013.
The Novozymes Biopharma acquisition diversifies and expands Repligen's product offering and customer base while doubling the company's manufacturing capacity. Novozymes Biopharma is a leader in the manufacture and supply of growth factors used in mammalian cell culture and Protein A affinity ligands used in the production of monoclonal antibodies. The company is located in Lund, Sweden and operates a 45,000 sq. ft., c-GMP capable production facility which was recently renovated in 2008 with an investment of $25 million. The products acquired in the Novozymes transaction are anticipated to generate $16-$17 million in revenue in 2011, and are sold primarily under long-term supply agreements with major life sciences companies including EMD Millipore, Sigma-Aldrich Corporation and GE Healthcare.
Repligen is currently a leader in the supply of four different forms of recombinant Protein A, a key ingredient used in the production of most monoclonal antibodies. Through this transaction, Repligen will acquire Novozymes "native" Protein A product which is used in the production of several of the early blockbuster monoclonal antibody drugs. As part of the acquisition, GE Healthcare and Repligen have extended the term of their existing supply agreement for recombinant Protein A from 2014 to 2021. A further key benefit of the acquisition is Repligen's expansion into the cell culture ingredients market which increases our product breadth and opens a market opportunity for us in the production of fermentation ingredients and a future market opportunity as stem and cell-based therapies emerge.