Hepalink adding biologics CDMO Cytovance in $200m acquisition

API supplier Hepalink will buy Cytovance for $206m (€183m) in a deal the biologics CDMO says will help expedite its expansion plans.

There has been a stream of expansion plans announced at Cytovance’s facility in Oklahoma City, over the last few years, with the company citing increased demand from SME pharma for its mammalian and microbial cell development and manufacturing services.

Plans to further increase capacity through the addition of 5,000L and 10,000L mammalian reactors and 1,000L and 5,000L microbial fermenters are set to be fast-tracked by a deal signed today which will see the contract development and manufacturing organisation (CDMO) acquired by Hepalink USA.

The agreement “will expand our ability to develop and grow both our domestic and international businesses and will accelerate our current expansion plans in our Oklahoma City facilities,” said Cytovance CEO Darren Head, who added it would be business-as-usual despite having new owners.

“We do not anticipate any changes in how we currently do business. We will become part of a very successful company that shares our commitment to safety and quality the acquisition would.”

Hepalink is a Shenzhen, China-based supplier of heparin sodium API and the addition of Cytovance to its US subsidiary follows the acquisition of Scientific Protein Laboratories in 2013.

“Hepalink will accelerate the realization of its strategy in the global macromolecule biopharmaceutical space,” Hepalink’s CEO Li Li said. “Cytovance will have the resources to expand its manufacturing capabilities, enhancing its ability in late stage clinical drug production and commercial business.”

Hepalink is paying investment firm Great Point Partners $206m for the CDMO and the deal is expected to close in October.