Emergent BioSolutions To Buy ACAM2000 Business From Sanofi For Up To $125 Mln

(RTTNews) - Emergent BioSolutions Inc. (EBS) Friday announced that it has entered into an agreement to acquire the ACAM2000, (Smallpox (Vaccinia) Vaccine, Live) business of Sanofi (SNYNF, SNY) for up to $125 million in all cash deal.

The consideration consists of $97.5 million upfront and up to $27.5 million in near-term contingent regulatory and manufacturing-related milestones.

This transaction, which is subject to customary closing conditions including antitrust regulatory approval, is expected to close in 2017.

Upon the closing of the deal, Emergent will acquire ACAM2000, the only vaccine licensed by the Food and Drug Administration for active immunization against smallpox disease for persons determined to be at high risk for smallpox infection.

The company will also buy an existing 10-year contract originally valued at up to $425 million with the Centers for Disease Control and Prevention or CDC with a remaining value of up to approximately $160 million for deliveries of ACAM2000 to the Strategic National Stockpile.

The company will also buy a cGMP bulk manufacturing facility and a lease to a cGMP fill/finish facility, both U.S.-based, along with the existing staff of approximately 100 employees.

Daniel Abdun-Nabi, president and chief executive officer of Emergent, stated, "This transaction diversifies our portfolio and broadens our countermeasure franchise with a vaccine that is being stockpiled both in the U.S. and internationally. We expect it to meaningfully contribute to revenue growth in 2018 and advance our efforts towards achieving our goal of $1 billion in total revenue by 2020."

Upon the closing of the transaction, Emergent will assume responsibility for an existing 10-year CDC contract, which will expire and be up for renewal or extension in 2018.

Emergent expects that this transaction will enhance its contract manufacturing operations through the addition of live viral manufacturing and fill/finish capabilities.