Ajinomoto Co., Inc. is set to acquire Forge Biologics, a viral vector and plasmid contract development and manufacturing organisation (CDMO) and clinical-stage therapeutics company. According to Forge Biologics, the acquisition is an all-cash deal for $620 million, which is Forge's enterprise value on a cash-free and debt-free basis.
The equity value attributable to unitholders of Forge Biologics is approximately $554 million. This is anticipated to be the amount adjusted when the acquisition deal is executed.
Ajinomoto's acquisition of Forge Biologics extends global capabilities in adeno-associated viruses (AAV) and plasmid gene therapy manufacturing. It will help to diversify and strengthen the company's current contract development and manufacturing services.
All development and manufacturing of these products is done at Forge's 200,000ft2 current good manufacturing practice (cGMP) facility in Columbus, Ohio in the US.
Impact of the acquisition agreement
Timothy Miller, PhD, CEO, President, and Co-founder of Forge Biologics stated that the CDMO is "excited" to join Ajinomoto Co. to continue expanding its business of "helping innovators manufacture much needed genetic medicines”. Miller added that the acquisition will help to advance its mission into the next global stage of development to expand its capabilities.
Yasuyuki Otake, Corporate Executive, General Manager of Bio-Pharma Services Department of Ajinomoto Co stated that the company is looking forward to working with Forge and its specialised manufacturing facility because "Forge brings to Ajinomoto an entirely new capability that will vitally enhance our Bio-Pharma Services business and help create new value through innovative solutions for communities and society," commented Otake.
The new acquisition deal is expected to be completed by the end of the fourth quarter of 2023, subject to customary closing conditions, including regulatory approvals.
In addition to cGMP viral vector and plasmid DNA manufacturing, Forge Biologics also provides other services, including end-to-end process and analytical development, final fill, as well as regulatory consulting support.
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