Repligen snags Novozymes business in $28.3M deal

Repligen has made a move to boost its biomanufacturing capacity and its commercial prospects. The Waltham, MA-based biotech says it grabbed Novozymes Biopharma Sweden for $22.7 million (€17 million) in upfront cash and potential future payments of about $5.6 million (€4 million).

Repligen ($RGEN), which has had its share of downers in the clinic in recent years, adds some revenue-generating products in this deal, including growth factors and products used to make monoclonal antibodies. These products are expected to bring in between $16 million and $17 million this year. The acquisition also includes a 45,000-square-foot biomanufacturing plant in Lund, Sweden. Novozymes had said it would divest the business earlier this year and plans to focus on its hyaluronic acid program and other projects.

Repligen has sought balance in its business this year amid a setback in the clinic for its bipolar depression drug RG2417, which failed this year to show a significant improvement in a mid-stage study. The company has stayed in the drug-development game with a late-stage drug for pancreatic cancer imaging and earlier stage candidates for rare CNS disorders. Yet it's clear that the company is also emphasizing products that can deliver revenue now.

"Earlier this year we announced our strategic objective to transition into a commercially focused company," Repligen CEO Walter Herlihy said in a statement, "and the acquisition of the Novozymes business will deliver on that goal by significantly augmenting our product portfolio and providing a path to sustainable profitability."

- here's the release