Cytovance® Biologics, Inc., announced today that they have entered into a definitive agreement by which Hepalink USA Inc. will acquire Cytovance® Biologics Inc., a leading biopharmaceutical contract development manufacturing company.
Cytovance Biologics and Hepalink USA
The addition of Cytovance Biologics to Hepalink USA Inc. and its parent company Shenzhen Hepalink Pharmaceutical Co., Ltd., adds a leading biologics CDMO to its current USA portfolio, which also includes Wisconsin-based Scientific Protein Laboratories LLC.
Hepalink's investment will accelerate Cytovance's expansion plans which include the addition of 5,000L and 10,000L mammalian reactors and 1,000L and 5,000L microbial fermentors as well as increased analytical capabilities, process development and process characterization capabilities.
"We are excited about this transaction and what it means for Cytovance," said Mr. Darren Head, President & Chief Executive Officer of Cytovance. "This will expand our ability to develop and grow both our domestic and international businesses and to secure our current expansion plans in our Oklahoma City facilities. 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."
"We welcome and are honored to have Hepalink as the new owner of Cytovance," stated Dr. William Canfield, Co-Chair and founder of Cytovance. "They will be thrilled, as I have been, to work with Cytovance's extraordinarily talented and capable team of professionals who have made a practice of exceeding customer expectations while building one of the world's best companies in the biopharmaceutical contract manufacturing market."
"This is a great day for Cytovance, our employees, our customers, and investors," commented Donald Wuchterl, Chief Operating Officer of Cytovance. "I have had the opportunity to get to know members of the Hepalink/SPL team and I am convinced that the combination of our two companies will yield outstanding synergistic benefits. Both companies are dedicated to the highest levels of quality and customer care."
Late Stage Clinical Drug Production
"This acquisition represents an exciting opportunity for Hepalink, Cytovance and its employees, and Cytovance's customers," said Mr. Li Li, Chairman and Chief Executive Officer of Hepalink. "Hepalink will accelerate the realization of its strategy in the global macromolecule biopharmaceutical space. Cytovance will have the resources to expand its manufacturing capabilities, enhancing its ability in late stage clinical drug production and commercial business. We are very impressed with Cytovance's top-tier leadership team and will entrust this team to lead the future growth of the company."
Under terms of the stock purchase agreement, Hepalink USA Inc, has agreed to acquire Cytovance® Biologics Inc. for US$205.68 million in cash plus certain contingent payments. Hepalink's wholly owned U.S. subsidiary, Hepalink USA, will acquire 100% of the equity interest of Cytovance® Biologics Inc. Upon consummation of the acquisition, Hepalink will hold 100% of the equity interest indirectly through Hepalink USA.
The transaction is expected to close in October following regulatory approval, at which point Cytovance® Biologics Inc. will become a fully consolidated subsidiary of Hepalink USA Inc. When the transaction is completed, Cytovance management will remain in place, as will its 178 employees in the United States.