Emergent BioSolutions Completes Acquisition of Sanofi’s Small-Pox Vaccine Business
Emergent BioSolutions, a specialty biopharmaceutical company and contract manufacturer, has completed its previously announced $117-million acquisition of Sanofi’s smallpox vaccine business, which includes ACAM2000 (a smallpox vaccine), two US manufacturing facilities, and office/warehouse space.
At the closing, Emergent paid $97.5 million in an upfront payment and $20 million in milestone payments earned as of the closing date tied to the achievement of certain regulatory and manufacturing-related milestones for a total payment of $117.5 million. The agreement includes a potential milestone payment of up to $7.5 million, tied to the achievement of the remaining regulatory milestone event.
The acquired buildings include a cGMP live viral manufacturing facility in Canton, Massachusetts and a cGMP viral fill/finish facility in Rockville, Maryland.
With this acquisition, Emergent also acquires an existing 10-year contract with the Centers for Disease Control and Prevention (CDC), originally valued at up to $425 million and with a remaining value of up to approximately $160 million, for establishing US-based manufacturing of ACAM2000 and delivering ACAM2000 to the Strategic National Stockpile (SNS), a US government supply of pharmaceuticals and medical supplies.
With the closing of the transaction, Emergent expects to complete the tech transfer of an upstream portion of ACAM2000 manufacturing to the Canton facility. Fulfillment of all remaining product deliveries under the existing CDC contract is contingent on Emergent securing US Food and Drug Administration approval of a recent supplemental biologics license application submission.
The company anticipates resuming deliveries of ACAM2000 under the existing CDC contract in 2018. In addition, the CDC contract will expire and be up for renewal or extension in 2018 and the company intends to negotiate a follow-on, multi-year contract with the US government to ensure the continued supply of ACAM2000 to the SNS.
Source: Emergent Biosolutions