Therapure Biopharma announced a joint venture between 3SBio and CPE Funds has entered into an agreement to acquire Therapure’s contract development and manufacturing (CDMO) business and certain rights to plasma products and technology for the Chinese market for US$290 million, subject to certain adjustments.
The CDMO business will continue to operate under the Therapure brand and be led by Therapure’s CEO Nick Green and the current senior management team at its manufacturing facilities located in Mississauga, Ontario. The Catalyst Capital Group will retain ownership of, and will support future investments in, Therapure’s plasma protein and therapeutic products business under a separate entity. The joint venture between 3SBio and CITICPE will contribute at least an additional C$20-25 million to ProductsCo under the terms of the agreement to be used for the construction of a new commercial facility.
This new relationship with 3SBio and CITICPE provides the CDMO business access to greater mammalian cell and downstream purification manufacturing capabilities and a broader geographic reach. In addition, it also provides strategic support for the expansion of the CDMO business and facilities, providing employees and stakeholders with greater opportunities in Canada.
This transaction will also form a strategic partnership between Catalyst, 3SBio and CITICPE. Operationally the CDMO business will continue to produce clinical material with the team’s leading expertise in plasma proteins manufacturing in the existing facilities and will construct a new commercial facility on behalf of ProductsCo for the manufacture of its plasma proteins commercial portfolio. This transaction allows ProductsCo to focus on the clinical development and commercialization of its plasma proteins products in high growth markets, initially in the US and Canada. In addition, it leverages 3SBio's knowledge and expertise in commercializing Therapure’s PlasmaCap EBA technology in the Chinese market.
"This transaction is exciting for the future of Therapure and for the Canadian biopharma industry," said Nick Green, President and Chief Executive Officer of Therapure. "It will be a powerful enabler for further growth and expansion of both 3SBio and Therapure in high growth areas of the market through our combined capabilities. This will put us in a stronger position to lead, innovate and grow, and further support our current and future clients."
Following 3SBio shareholders' approval, the acquisition is expected to be completed by the end of this year.