Emergent acquires Sanofi’s ACAM2000 (Smallpox (Vaccinia) Vaccine, Live) and GSK’s Anthrax monoclonal antibody Raxibacumab.
Maryland-based Emergent BioSolutions, a global life sciences company providing specialty products for civilian and military populations that address accidental, intentional, and naturally emerging public health threats, recently expanded its portfolio of drug products through two acquisitions.
In the first transaction, Emergent will pay Sanofi $125 million for the latter’s ACAM2000 () (Smallpox (Vaccinia) Vaccine, Live), the only vaccine licensed by the US FDA for active immunization against smallpox disease for persons determined to be at high risk for smallpox infection. Emergent will make an upfront payment of $97.5 million and up to $27.5 million in near-term contingent regulatory and manufacturing-related milestones. The deal includes an existing 10-year contract the Centers for Disease Control and Prevention (CDC) for delivery of ACAM2000 to the Strategic National Stockpile (SNS) with a remaining value of up to $160 million, a US cGMP bulk manufacturing facility and a lease to a US cGMP fill/finish facility.
ACAM2000, according to the company, is synergistic with its existing VIGIV [Vaccinia Immune Globulin Intravenous (Human)] smallpox product, the only FDA-licensed therapeutic for certain complications from smallpox vaccination. It also expands Emergent’s portfolio of only-in-class products while also diversifying its selection of medical countermeasures against Category A bioterrorism agents. The company anticipates an increase in its contract manufacturing operations due to the addition of live viral manufacturing and fill/finish capabilities and the acquisition of the existing supply agreement.
“This transaction diversifies our portfolio and broadens our countermeasure franchise with a vaccine that is being stockpiled both in the U.S. and internationally,” said Daniel Abdun-Nabi, President and Chief Executive Officer of Emergent BioSolutions. “We expect it to meaningfully contribute to revenue growth in 2018 and advance our efforts towards achieving our goal of $1 billion in total revenue by 2020. We further anticipate that ACAM2000 will help us achieve our goal of generating more than 10% of total revenue from international markets. This acquisition fits squarely within our core strategy and business focus, and we look forward to closing this transaction and to integrating this business into our operations.”
In the second acquisition, Emergent agreed to pay GlaxoSmithKline (GSK) $76 million upfront and $20 million in product sale and manufacturing-related milestone payments (likely due in 2019) for raxibacumab, a fully human monoclonal antibody approved by the FDA for the treatment and prophylaxis of inhalational anthrax. As with the ACAM2000 transaction, this deal also includes a multi-year contract to supply raxibacumab to the SNS (with the Biomedical Advanced Research and Development Authority (BARDA)), which is valued at up to approximately $130 million. Emergent plans to transfer manufacturing activities (bulk drug and fill/finish) to its own facilities in Baltimore, Maryland in 2020.
“Emergent is committed to continuing to build a portfolio of medical countermeasures that meets our customers’ needs to protect citizens from a broad array of public health threats. The addition of this critical countermeasure further strengthens our leadership position in this market and expands our franchise of vaccines and therapeutics addressing Category A bioterrorism threats,” said Abdun-Nabi. “We look forward to establishing raxibacumab as an anchor FDA-approved product for our newly-expanded Bayview manufacturing facility in Baltimore, Maryland. As we focus on providing preparedness solutions to public health threats, we will continue to actively pursue additional acquisition opportunities that leverage our core competencies and drive growth.”
