Emergent BioSolutions To Buy PaxVax For $270 Mln In Cash

(RTTNews) - Emergent BioSolutions Inc. (EBS) said that it agreed to acquire PaxVax, a company focused on specialty vaccines that protect against existing and emerging infectious diseases, for an all-cash consideration of $270 million. PaxVax is majority owned by an affiliate of Cerberus Capital Management, L.P.

Emergent BioSolutions believes the acquisition will contribute incremental 2019 revenues of $70 million to $90 million and be accretive by the end of 2019.

Upon the closing of the transaction, Emergent will acquire Vivotif (Typhoid Vaccine Live Oral Ty21a), the only oral vaccine licensed by the U.S. Food and Drug Administration for the prevention of typhoid fever, a potentially severe and life-threatening infection caused by the bacterium S. Typhi. Vivotif is licensed for sale in 27 countries.

Emergent will acquire Vaxchora (Cholera Vaccine Live Oral), the only FDA-licensed vaccine for the prevention of cholera caused by Vibrio cholerae serogroup O1, a potentially serious intestinal disease.

Emergent will acquire An Adenovirus 4/7 vaccine candidate being developed for military personnel under contract with the U.S. Department of Defense (DoD) and additional clinical-stage vaccine candidates targeting Chikungunya and other emerging infectious diseases; European-based cGMP biologics manufacturing facilities; Approximately 250 employees including those in research and development (R&D), manufacturing, and commercial operations with a specialty salesforce.

The transaction, which is subject to customary closing conditions, including antitrust regulatory approval, is expected to close in the fourth quarter of 2018.