The all-cash deal is expected to help Catalent expand its capabilities to develop specialized and costly gene therapy treatments.
In a statement John Chiminski, Catalent’s chair and chief executive officer, said that Paragon’s unparalleled expertise in the rapidly growing market of gene therapy manufacturing would be a transformative addition to Catalent’s business that would accelerate long-term growth.
“Paragon brings to Catalent a complementary capability that will fundamentally enhance our biologics business and our end-to-end integrated biopharmaceutical solutions for customers,” said Chiminski. “We look forward to working with Paragon’s incredibly talented team and world-class customers to complete the significant ongoing investments into expanded state-of-the-art facilities and deliver revolutionary, lifesaving treatments to patients,” he continued.
Gene therapies use specially engineered viruses, or viral vectors, to deliver genetic material into defective cells. The goal is to improve or potentially cure an inherited condition.
Paragon’s differentiated scientific, development and manufacturing capabilities have positioned it to capitalize on strong industry tailwinds in the potentially $40 billion addressable market for gene therapy. Paragon brings specialized expertise in adeno-associated virus (AAV) vectors, the most commonly used delivery system for gene therapy, as well as unique capabilities in GMP plasmids and lentivirus vectors.
For over 25 years, Paragon has partnered with some of the world’s best biotech and pharma companies to develop and manufacture products based on transformative technologies, including AAV and other gene therapies, next-generation vaccines, oncology immunotherapies (oncolytic viruses and CAR-T cell therapies), therapeutic proteins, and other complex biologics.
Pete Buzy, Paragon’s president and CEO said, “Our existing investors, NewSpring Health Capital and Camden Partners, were extremely supportive in getting us to where we are today. We are excited to join forces with the leading drug development and manufacturing partner in our industry. This transaction will enable us to achieve our next stage of development and expand our capabilities and platform for the benefit of our customers and their patients.”
According to a Reuters report, Baltimore-based Paragon is expected to record more than $200 million in revenue this year, The Wall Street Journal said.
Gene therapies use specially engineered viruses, or viral vectors, to deliver genetic material into defective cells, in hopes of improving or potentially even curing an inherited condition.
Catalent also develops drugs for other companies and does business in Asia, Europe, and North and South Americas.
Its biologics and specialty drug business, according to Reuters, generated about $602 million in revenue in the 2018 financial year.