Zydus to acquire US biotech firm Agenus’ facilities in California

Zydus Lifesciences plans to acquire US-based Agenus Inc’s biologics manufacturing facilities in California, a deal which will mark the Indian pharma company’s entry into the global biologics contract development and manufacturing sector.

Zydus will acquire two biologics manufacturing facilities from Agenus at Emeryville and Berkeley in California for an upfront consideration of $75 million and a contingent payment of $50 million, to be paid over three years subject to achievement of certain revenue milestone, the Ahmedabad-based company said in a news release.

Agenus is a clinical-stage immuno-oncology company focussed on developing immune therapies for cancer.

This acquisition will give Zydus access to advanced biologics manufacturing capabilities and enable the company to establish a key presence in California, a leading global biotechnology hub, it said.

"The acquisition will give Zydus a strategic foothold in the US for biologics manufacturing in the global hub for biotech innovation, California,” said Sharvil Patel, Managing Director, Zydus Lifesciences.

“It will enhance our ability to partner with innovation-centric entities, advancing new products and prioritising patient-centric solutions. The move strengthens our long-term biologics vision and positions us to better serve the evolving needs of the global biopharmaceutical industry," he added.

The deal will also enable Zydus to leverage supply chain dynamics to expand its reach in the US and globally.

Zydus’ contract development and manufacturing business will operate as an independent entity and house the acquired manufacturing capabilities.

Zydus will become an exclusive contract manufacturer for Agenus and will provide manufacturing services for clinical and commercial supply of two identified Phase-3 ready immuno-oncology products, Botensilimab (BOT) and Balstilimab (BAL).

Zydus will also have the first right of negotiation to manufacture any of the future pipeline products developed by Agenus.

Separately, Zydus Lifesciences has entered into an agreement with Agenus Inc to commercialise the US company’s investigational cancer therapy combinations of botensilimab (BOT) and balstilimab (BAL) in India and Sri Lanka.

The therapies are designed to strengthen and sustain the immune system’s response against tumour cells.

Currently in advanced clinical trials, BOT and BAL have demonstrated significant clinical activity across nine cancer types in more than 1,200 patients, Zydus said in a statement.

As a part of the agreement, Zydus will be responsible for clinical development and regulatory approvals of licensed products in these territories and will pay 5% royalty on net sales upon successful approval and commercialisation.