Agilent Technologies Inc. (NYSE: A) today announced it has signed a definitive agreement to acquire BIOVECTRA, a leading specialized contract development and manufacturing organization, for $925 million.
Based in Canada, BIOVECTRA produces biologics, highly potent active pharmaceutical ingredients, and other molecules for targeted therapeutics.
The acquisition builds on Agilent’s CDMO specialization in oligonucleotides and CRISPR therapeutics in three key areas:
- Expands portfolio of services. BIOVECTRA offers sterile fill-finish services, pDNA and mRNA capabilities, and lipid nanoparticle (LNP) formulation.
- Adds rapidly growing modalities. BIOVECTRA brings expertise in fast-growing segments, including antibody drug conjugates (ADCs), highly potent active pharmaceutical ingredients (HPAPIs), and GLP-1.
- Brings world-class capabilities to support gene editing. BIOVECTRA’s capabilities in biologics combined with Agilent’s expertise in gRNA will provide customers with a single source for gene-editing technology.
Both BIOVECTRA and Agilent Technologies are fully integrated CDMOs with state-of-the-art facilities that follow current Good Manufacturing Practices (cGMP), a high standard for methods, facilities, and controls used in manufacturing, processing, and packaging of active pharmaceutical ingredients.
“We look forward to welcoming BIOVECTRA to Agilent,” said Agilent President and CEO Padraig McDonnell. “The company has an outstanding record of innovation, and its employees share our commitment to providing integrated biopharma solutions that continuously deliver more value to customers.”
McDonnell continued: “Plus, BIOVECTRA’s manufacturing capabilities further expand Agilent’s end-to-end biopharma offerings into new growth vectors, including workflows that seamlessly integrate analytical instrumentation, consumables, and a wide range of lab services.”
BIOVECTRA supports early-stage clinical development to large-scale commercial manufacturing. The company currently serves biotech and pharmaceutical companies in North America and Europe.
“BIOVECTRA is excited to join Agilent, a company whose dedication to people and customers is very much aligned with ours,” said Oliver Technow, CEO of BIOVECTRA. “BIOVECTRA has dedicated nearly 55 years to the relentless pursuit of helping our customers solve complex problems that improve patients’ lives. This synergistic pairing of our capabilities with Agilent’s will further enhance the value we can offer to our customers.”
BIOVECTRA delivered $113 million in revenue during 2023 and expects double-digit revenue growth in 2024. Agilent expects that the acquisition will be $0.05 dilutive to non-GAAP EPS in the first full year after closing. Agilent will fund the transaction using a mix of cash on hand and debt financing.
The transaction is subject to customary closing conditions, including receipt of regulatory approvals, and is expected to close before 2025. Upon close, BIOVECTRA will become part of the Agilent Diagnostics and Genomics Group.