Zydus To Acquire Two US Biologics Units For $75 Million, Signs Multiple Agreements

Zydus Lifesciences Ltd. and its wholly owned subsidiary, Zydus Pharmaceuticals USA Inc., have agreed to acquire two biologics manufacturing facilities in the US from Agenus Inc. and Agenus West LLC for $75 million in cash.

The deal includes a contingent payment of up to $50 million over three years, linked to revenue milestones. Zydus said the acquisition will provide access to advanced biologics manufacturing in California and mark its entry into the global biologics contract development and manufacturing organisation business.

Upon closing, Zydus will become the exclusive contract manufacturer for Agenus, supporting the supply of two phase-3 immuno-oncology drugs—Botensilimab and Balstilimab. Zydus will also have the first right of negotiation for future manufacturing of Agenus’ pipeline products. The transaction is expected to close within 60 days of signing, with a possible 30-day extension.

Separately, Zydus said its subsidiary Zynext Ventures USA LLC will invest $16 million to acquire 2.13 billion shares, or 5.9% of Agenus' paid-up capital, through a securities purchase agreement.

For 2023, Agenus reported revenue of $103.5 million.

Zydus also entered a licensing agreement with Agenus for exclusive rights to commercialise Botensilimab and Balstilimab in India and Sri Lanka. Zydus will manage development, regulatory approvals and commercialisation, and will pay a 5% royalty on net sales upon market approval.

The drugs, currently in advanced trials, have shown notable clinical activity in more than 1,200 patients across nine cancer types, according to Zydus.