Catalent to Acquire Paragon Bioservices for $1.2b

Catalent, Inc., a $2.46b provider of delivery technologies for drugs, biologics, and consumer and animal health products, is buying Paragon Bioservices, Inc., a developer of viral vectors for gene therapies. The deal Complements Catalent's biologics business. Paragon engages in the production and purification of therapeutic proteins, monoclonal antibodies, viral vectors, and vaccines-VLPs, as well as production of master and working cell banks. The company has specialized expertise in adeno-associated virus (AAV) vectors, which are the most common vectors for gene therapies. It also has significant capabilities in GMP plasmids and lentivirus vectors. In 2018, Catalent acquired Cook Pharmica for $950m. In 2018, Catalent acquired UK-based Juniper Pharmaceuticals. Gene and cell therapies are having great importance. In March 2019, Thermo Fisher Scientific paid $1.7b for Brammer, a contract development and manufacturing organization (CDMO) focused on manufacturing viral vectors for gene and cell therapies. Deal value - $1.2b on sales of ~$65m (18.46x).

Keywords: Healthcare Investment Banking, Healthcare M&A, Healthcare mergers