Catalent Biologics, through its Paragon Gene Therapy business, has agreed to assume the leases to two Novavax facilities in Maryland, USA. The move, said Novavax, will reduce its operating costs and provide a cash payment of about $18 million, allowing the company to focus on advancing its NanoFlu and ResVax vaccines through the next phases of clinical development and regulatory review.

Stanley Erck, president and CEO of Novavax, said the “mutually beneficial” transaction allows Paragon to quickly support the growth of its gene therapy business while simultaneously offering Novavax a “strategic and cost-effective approach to addressing its manufacturing needs into the future”.

Pete Buzy, president of Paragon’s gene therapy business, added: “We look forward to working closely together in this strategic collaboration to advance Novavax’s innovative recombinant vaccines platform and expand our ability to serve the burgeoning gene and cell therapy market.”

Most of the 100 Novavax employees at the sites in Gaithersburg and Rockville will transfer to Paragon, supporting Novavax’s biologics license applications and post-licensing activities. In the longer term, Paragon will be available to manufacture commercial quantities of the vaccines for Novavax.

Concurrently, Novavax will enter into a long-term agreement with Paragon to provide process development and manufacturing services for specific Novavax programs. Both transactions are expected to complete this month.

Catalent bought Paragon for $1.2 billion in April this year, boosting its biologics capabilities.

In separate news, and in a further boost to its biologics manufacturing business, Catalent has agreed to buy Bristol-Myers Squibb’s plant in Anagni, Italy. The facility manufactures and packages oral solid, biologic and sterile products.

Catalent will continue to produce Bristol-Myers Squibb’s current product range at the site once the deal has closed, which is anticipated by the end of 2019 subject to regulatory approvals, consultation with the unions and other customary conditions.

“The addition of the Anagni facility provides our European customers with great biologics and oral dose capabilities to accelerate their development programs and improve commercial supply,” said Alessandro Maselli, Catalent’s president and chief operating officer.

The Italian plant adds to Catalent’s existing sterile fill/finish capabilities in Belgium and its drug substance, analytical and fill/finish capabilities in North America.