REDWOOD CITY, Calif. /PRNewswire/ -- PaxVax today announced that it has entered into a definitive agreement to be acquired by Emergent BioSolutions (NYSE: EBS) ("Emergent"). PaxVax is majority owned by an affiliate of Cerberus Capital Management, L.P. ("Cerberus"), a global leader in alternative investing, and Ignition Growth Capital is a minority shareholder in the company.
The agreement will create a global leader with a significant focus on protecting against emerging and overlooked infectious diseases through the development and commercialization of novel specialty vaccines, while ensuring uninterrupted supply of Vaxchora® and Vivotif®.
"We are very pleased to unite two companies with a shared mission --- protecting civilian and military populations with innovative vaccines addressing a broad range of public health threats," stated Nima Farzan, Chief Executive Officer and President of PaxVax. "Bringing together PaxVax's rich portfolio of commercialized vaccines and robust pipeline of vaccines for diseases including adenovirus and chikungunya, with Emergent's global capabilities will create the world's largest independent specialty vaccine company."
PaxVax has integrated capabilities across R&D, manufacturing and commercial operations that add significant value to Emergent's core business. The combined company will support the development of even more vaccines in areas of significant unmet need, with a commitment to addressing emerging and recalcitrant global health threats.
PaxVax marketed assets include Vaxchora®, the only U.S. Food and Drug Administration (FDA) approved and Advisory Committee on Immunization Practice (ACIP) recommended vaccine for protection against cholera, a disease caused by Vibrio cholerae serogroup O1, and Vivotif®, an oral vaccine for typhoid fever that is currently licensed for sale in 27 countries.
"Our world-class team has always been driven by our mission to ensure specialty vaccines are available to populations most affected by infectious diseases," Farzan added. "The company's combined resources will accelerate our pursuit of opportunities to strengthen our ability to become a significant force for public health."
"PaxVax provided a compelling opportunity for us to partner with a talented management team and help scale a leading specialty vaccine platform in a large unmet market," commented Brett Ingersoll, Head of Global Private Equity and Senior Managing Director of Cerberus. "Since our investment in 2015, PaxVax has accelerated its financial performance as well as achieved significant operational accomplishments, including the launch of its second product. PaxVax has been a successful investment for Cerberus, generating strong returns for our investors, and is consistent with our long and positive track record of investing in the pharmaceutical sector. We are confident PaxVax will continue its great momentum as part of Emergent."
The acquisition is subject to customary closing conditions, including U.S. antitrust regulatory approval, and is expected to close in the fourth quarter of 2018.
Perella Weinberg Partners LP acted as financial advisor to PaxVax. Covington & Burling LLP acted as legal counsel for Emergent. Dechert LLP acted as legal counsel for PaxVax and Cerberus and Morgan Lewis & Bockius LLP acted as legal counsel for PaxVax.
About Cerberus
Founded in 1992, Cerberus is a global leader in alternative investing with approximately $34 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors.
