Agilent to Acquire North American CDMO BIOVECTRA
Expands Agilent's end-to-end biopharma solutions that accelerate drug discovery, development, and manufacturing
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.
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A BIOVECTRA manufacturing facility (Photo: Business Wire)
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 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.
About BIOVECTRA
BIOVECTRA (www.biovectra.com) is a global biotech and pharmaceutical CDMO (contract development and manufacturing organization) that specializes in clinical-to-commercial scale production capabilities for biologics, small molecules, bioreagents, lipids, pDNA, mRNA and LNP manufacturing and fill finish for drug products. Flexibility, creativity, process optimization and compliance are at the heart of our method. With nearly 55 years of experience and cGMP facilities in Prince Edward Island and Nova Scotia, Canada, we assure our programs advance on time and with the highest quality outcomes.
About Agilent Technologies
Agilent Technologies Inc. (NYSE:A) is a global leader in analytical and clinical laboratory technologies, delivering insights and innovation that help our customers bring great science to life. Agilent's full range of solutions includes instruments, software, services, and expertise that provide trusted answers to our customers' most challenging questions. The company generated revenue of $6.83 billion in fiscal 2023 and employs approximately 18,000 people worldwide. Information about Agilent is available at www.agilent.com. To receive the latest Agilent news, subscribe to the Agilent Newsroom. Follow Agilent on LinkedIn and Facebook.
Forward Looking Statements
This news release contains forward-looking statements as defined in the Securities Exchange Act of 1934 and is subject to the safe harbors created therein. The forward-looking statements contained herein include, but are not limited to, statements regarding the capabilities the acquisition brings and the assets' future uses. These forward-looking statements involve risks and uncertainties that could cause Agilent's results to differ materially from management's current expectations. Such risks and uncertainties include, but are not limited to, unforeseen changes in the strength of Agilent's customers' businesses; unforeseen changes in the demand for current and new products, technologies, and services; unforeseen changes in the currency markets; customer purchasing decisions and timing; and the risk that Agilent is not able to realize the savings expected from integration and restructuring activities. In addition, other risks that Agilent faces in running its operations include the ability to execute successfully through business cycles; the ability to meet and achieve the benefits of its cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross-margin pressures; the risk that its cost-cutting initiatives will impair its ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties and global economic conditions on its operations, its markets and its ability to conduct business; the ability to improve asset performance to adapt to changes in demand; the ability of its supply chain to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix; the ability of Agilent to successfully integrate recent acquisitions; the ability of Agilent to successfully comply with certain complex regulations; and other risks detailed in Agilent's filings with the Securities and Exchange Commission, including its quarterly report on Form 10-Q for the fiscal quarter ended April 30, 2024. Forward-looking statements are based on the beliefs and assumptions of Agilent's management and on currently available information. Agilent undertakes no responsibility to publicly update or revise any forward-looking statement.
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