The drug producer Fresenius Kabi is taking its first steps under a new strategy to bolster its intravenous drug offerings, starting with a $240 million acquisition of the smart infusion pump maker Ivenix.
The goal of the deal, with its total value split between upfront cash and milestone payments, is to grab a new device platform bound for the U.S. market following last year’s FDA approval and commercial launch while also complementing Fresenius Kabi’s global infusion treatment offerings.
At the same time, Fresenius Kabi announced plans to buy a controlling interest in the Madrid-based biosimilar developer mAbxience and trade €495 million ($549 million U.S.) in upfront and milestone payments for a 55% stake in the company plus an option to obtain the remaining shares.
Both moves, slated to close in mid-2022, support the company’s “Vision 2026” plan for expanding its medtech and biopharmaceutical capabilities.
That strategy includes “allocating capital in a targeted manner” with Fresenius Kabi’s growth set as a top priority, according to Stephan Sturm, CEO of the overarching German healthcare company Fresenius, which also maintains a 30% stake in the dialysis giant Fresenius Medical Care.
The Massachusetts-based Ivenix’s infusion system includes a digital, large-volume pump plus accompanying administration hardware as well as software and analytics tools designed to help reduce medical errors. By pairing it with Fresenius Kabi’s intravenous medicines, the companies hope to secure a stronger foothold in what Ivenix estimates to be a $5 billion hospital infusion segment.
Meanwhile mAbxience, which also has offices and contract drug manufacturing operations in Switzerland and Argentina, will add biologic production capabilities to Fresenius Kabi’s previous offerings in small molecule drug ingredients and fill and finish operations.
In addition, mAbxience produces biosimilar versions of the infusion-based cancer drugs Avastin (bevacizumab) and Rituxan (rituximab) and plans to launch a “mid-single-digit number of molecules across immunology and oncology” between 2024 and 2029, according to Fresenius Kabi.
“mAbxience is two businesses in one company,” Fresenius Kabi CEO Michael Sen said in a statement. “This is a highly complementary transaction in terms of biologics pipeline, manufacturing capabilities and the business model.”