Pharmaron Beijing Co., Ltd. [Kang Long Hua Cheng: SHE:300759], a Beijing-based medical products manufacturer and biotechnology R&D services provider, is seeking bolt-on buys and investments in cell and gene therapy manufacturing sector, said two sources familiar with the situation.
With a market cap of CNY 96.2bn (USD 14bn), the company welcomes target recommendations from the US, Europe and China with abilities to serve the innovative cell and gene therapy (CGT) developers, said the two sources.
The company has spent CNY 14.4bn (USD 2.2bn) in M&A in 2021, according to its 2021 annual report. It will continue to take M&A as one of the growth strategies to achieve a one-stop solutions provider from drug discovery to manufacturing for both small molecule, biologics, and CGT developers, as per the report.
It will also participate in the minority investment of startups with CGT manufacturing facilities for further CDMO business, said the first source.
The deal size is flexible depending on the target quality, said the first source.
The CRO giant acquired Allergan Biologics Limited (the Target) from an indirect UK-based subsidiary of AbbVie Inc. [NYSE: ABBV] for USD 120m in March 2021, according to its press release. ABL provides CMC (Chemistry, Manufacture and Control) services, with manufacturing facilities in Liverpool, UK for biologics and transformational therapies.
It has made two acquisitions since 2022. One is Aesica Pharmaceuticals (“The Cramlington Site”) from Swedish pharma group Recipharm for an undisclosed amount, advised by Goetzpartners and O’Melveny. The other is China’s Anikeeper Biotechnology, which breeds animals for tests for CNY 83.6m, according to its press releases.
The company had cash and cash equivalent of CNY 3.5bn as of the end of 2021. It has posted CNY 7.4bn sales revenue and CNY 1.67bn net profit in 2021, growing 45% and 41.68% YoY amid growing global demands in drug development sector. The CGT unit has contributed 2.03% of the total revenues, as per the annual report.
The company declined to comment.
