GREENWICH, Conn. and OKLAHOMA CITY, Aug. 27, 2015 (GLOBE NEWSWIRE) -- via PRWEB - Cytovance® Biologics, Inc. ("Cytovance"), a Great Point Partners ("GPP") I, LP portfolio company and leading biopharmaceutical contract development manufacturing company (CDMO), announced today that it has entered into a definitive agreement to be acquired by Hepalink USA Inc. ("Hepalink") for $205.68M in cash.
The addition of Cytovance Biologics to Hepalink USA Inc., and its parent company Shenzhen Hepalink Pharmaceutical Co., Ltd. adds a leading biologics CDMO to its current USA portfolio, which also includes Wisconsin-based Scientific Protein Laboratories LLC. Hepalink's investment, will accelerate Cytovance's expansion plans which include the addition of 5,000L and 10,000L mammalian reactors and 1,000L and 5,000L microbial fermentors as well as increased analytical capabilities, process development and process characterization capabilities.
"We are excited about this transaction and what it means for Cytovance," said Mr. Darren Head, President and Chief Executive Officer of Cytovance. "This will expand our ability to develop and grow both our domestic and international businesses and will accelerate our current expansion plans in our Oklahoma City facilities. We do not anticipate any changes in how we currently do business. We will become part of a very successful company that shares our commitment to safety and quality."
Noah Rhodes, Principal of Great Point Partners and Board member of Cytovance stated, "We are incredibly proud of the entire Cytovance team and the business we have built together. When we invested in Cytovance in 2011 it was a relatively unknown company that had all of the right ingredients to become an industry leading CDMO, and our equity investment and relationships with senior lenders enabled the company to execute on an accelerated growth strategy. Cytovance has grown its revenue at a compound annual growth rate of 44% since our investment, and is now considered one of the preeminent biologics contract manufacturers in the world. We know that Cytovance will continue to thrive with its impressive new owner, Hepalink, who plans to invest additional capital to expand the company's operations."
"This acquisition represents an exciting opportunity for Hepalink, Cytovance and its employees, and Cytovance's customers," said Mr. Li Li, Chairman and Chief Executive Officer of Hepalink. "Hepalink will accelerate the realization of its strategy in the global macromolecule biopharmaceutical space. Cytovance will have the resources to expand its manufacturing capabilities, enhancing its ability in late stage clinical drug production and commercial business. We are very impressed with Cytovance's top-tier leadership team and will entrust this team to lead the future growth of the company."
The transaction is expected to close in October, subject to regulatory approval, at which point Cytovance Biologics Inc. will become a fully consolidated subsidiary of Hepalink USA Inc. Cytovance management and its 178 employees in the United States are expected to remain in place when the transaction is completed.
Wells Fargo Securities served as exclusive financial advisor to Cytovance Biologics, and Morrison Cohen served as the company's legal counsel.
About Great Point Partners
Great Point Partners ("GPP"), founded in 2003 and based in Greenwich, CT, is a leading health care investment firm with approximately $800 million of equity capital under management and 26 professionals, investing in the United States, Canada, and Western Europe. GPP is currently making new private equity investments from GPP II, which has closed on $215 million. Great Point manages capital in private (GPP I, $156 million, and GPP II) and public (BMVF, approximately $400 million) equity funds. Great Point Partners has provided growth equity, growth recapitalization, and management buyout financing to more than 100 health care companies. The private equity funds invest across all sectors of the health care industry with particular emphasis on biopharmaceutical infrastructure, devices and diagnostics, health care services, outsourcing, and information technology. The firm pursues a proactive and proprietary approach to sourcing investments and tuck-in acquisitions for its portfolio companies. Reach Great Point at 203-971-3300 or http://www.gppfunds.com.
About Hepalink
Hepalink, together with its U.S. subsidiary SPL, is one of the largest suppliers of heparin sodium API in the world, distributing its products to the global market and to internationally renowned pharmaceutical companies. Hepalink was established in 1998 and was listed on the Shenzhen Stock Exchange on May 6, 2010. Hepalink's headquarters are located in the Shenzhen High-Tech Park. More information is available at http://www.hepalink.com/en.
About Cytovance® Biologics Inc.
Cytovance® Biologics is a contract development manufacturing company specializing in the cGMP production of therapeutic proteins and antibodies from mammalian cell culture, microbial fermentation, transgenic processes, and small scale "flex suite" programs. In addition, Cytovance offers process development services, cell line development, purification development, stability testing, and regulatory support services – all from its Oklahoma City state-of-the-art facilities. Cytovance partners with clients to provide integral pathways in converting novel protein discoveries into lifesaving therapies and diagnostics.
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