Oxford Biomedica to acquire ABL Europe to expand global CDMO reach
Oxford Biomedica plc, a leading cell and gene therapy Contract Development and Manufacturing Organization (CDMO), is set to significantly enhance its global presence with the acquisition of ABL Europe SAS from Institut Mérieux. This strategic move, valued at €15 million, positions Oxford Biomedica as a key player in the biotechnology industry.
This acquisition provides Oxford Biomedica with multi-viral vector CDMO capabilities across its manufacturing sites in the EU, US, and UK. It also expands the company’s capacity in process and analytical development, addressing increased client demand for process development.
The acquisition of ABL Europe is expected to be immediately revenue accretive to Oxford Biomedica. It consolidates the company’s operations into a global pure-play CDMO in the cell and gene therapy space, broadening its international presence by establishing a footprint within the European Union through facilities located in Lyon and Strasbourg, France.
Strategic Expansion: Oxford Biomedica to Integrate ABL Europe into Operations
ABL Europe, specializing in the development and manufacturing of solutions for biotechs and biopharma, works on more than 10 cell and gene therapy programs spanning disease areas and vector types. Forecasted revenues for ABL Europe for the year ending 31 December 2023 are approximately €15 million.
Institut Mérieux, which already holds a 3.3 percent stake in Oxford Biomedica, intends to increase its ownership to approximately 10.0 percent by the end of Q3 2024. The completion of the transaction is expected in the first quarter of 2024, subject to regulatory approvals.
Dr. Frank Mathias, CEO of Oxford Biomedica, commented on the acquisition, highlighting the operational and commercial synergies and the company’s ability to serve a growing client demand worldwide. Andrew Brigham, Managing Director of Cartor, and Ian Brigham, Chairman of the Board, also expressed enthusiasm for the growth and new opportunities this acquisition will bring.
The transaction includes key financial components such as the issuance of new ordinary shares in the company and a commitment from Institut Mérieux to provide additional funding to cover capital expenditure and potential operational losses related to the acquisition.
This strategic acquisition not only solidifies Oxford Biomedica’s position in the market but also opens new avenues for innovation and growth in the biotechnology industry.