Charles River Acquires Vigene Biosciences
US CDMO Charles River Laboratories has entered into an agreement to buy Vigene Biosciences, a compatriot gene therapy CDMO specializing in viral vectors. The acquisition is expected to close at the beginning of the third quarter of 2021. The purchase price is likely to be $292.5 million in cash, but the transaction also includes contingent additional payments of up to $57.5 million based on future performance.
“The addition of Vigene Biosciences’ extensive gene therapy expertise will enable us to expand our comprehensive cell and gene therapy portfolio to span each of the major CDMO platforms – cell therapy, viral vector, and plasmid DNA production,” said Charles River’s chairman, president and CEO James Foster. “Our goal is to become our clients’ scientific partner of choice for advanced drug modalities from discovery and non-clinical development to cGMP manufacturing.”
Based in Rockville, Maryland, Vigene has expertise in adeno-associated virus cGMP production – the most commonly used delivery system for gene therapies – as well as for other major viral vectors, including lentivirus. The CDMO also offers high-quality, research grade and cGMP plasmid DNA, used in the development of viral vectors for gene-modified cell therapies, gene therapies and vaccine production.
Charles River expects Vigene to generate annual revenue of between $30 million and $35 million this year. According to Charles River, the addressable market for cell and gene therapy CDMO services, principally for cell therapy, plasmid DNA and viral vector production, is estimated at $2.5 billion globally and is forecast to grow at least 25% per year over the next five years.
The takeover of Vigene will also be highly complementary to Charles River’s existing gene therapy CDMO capabilities in Keele, UK, and Matfors, Sweden, which were acquired when it bought Cognate BioServices in March.
Author: Elaine Burridge, Freelance Journalist
