Oxford Biomedica Buys Homology’s In-House AAV Manufacturing Business
January 28, 2022
U.K. gene and cell therapy biotech Oxford Biomedica Solutions is buying into Homology Medicines’ adeno-associated virus manufacturing business and establishing a foothold in the United States.
Under the terms of their agreement, Oxford Biomedica will pay Homology $130 million upfront and invest $50 million to fund the joint venture Oxford Biomedica Solutions, in return for an 80 percent ownership stake. Homology will own 20 percent of the new company. Additionally, at any time following the three-year anniversary of the agreement, Oxford Biomedica will have a call option to purchase, and Homology will have a put option to require the purchase of Homology’s ownership interest in Oxford Biomedica Solutions.
The deal provides Oxford Biomedica with a presence in the United States and broadens its offerings and manufacturing expertise in AAV and lentiviral-based cell and gene therapies.
“Having a U.S. base brings us closer to customers, talent, innovation in academia and pools of capital all of which will allow growth and building a market leadership position,” said Roch Doliveux, chair and interim CEO of Oxford Biomedica.
For Homology Medicines, the deal provides funding to advance its pipeline of genetic medicines.
“We believe the opportunity in Oxford Biomedica Solutions further leverages the value we created in this broad capability, including the demonstrated expertise of our team, to provide much-needed high-quality viral vector to other companies and, importantly, more patients around the world,” said Arthur Tzianabos, president and CEO of Homology Medicines. “Our ownership stake in Oxford Biomedica Solutions, continued access to our AAV ‘plug and play’ manufacturing platform as a preferred customer, and our ability to benefit from any further manufacturing innovations, will be key value drivers for Homology.”
Oxford Biomedica Solutions will provide access to Homology’s proven end-to-end manufacturing capabilities. Future customers will also benefit from technical synergies brought in by the group’s extensive innovations and know-how in viral vector manufacturing. The companies say this collaborative and complementary AAV and lentiviral vector-based approach has the potential to accelerate the mission to improve patients’ lives worldwide.
Tim Kelly, currently chief operating officer of Homology, will become CEO and chair of its board of directors. At Homology, Kelly and his team built the company’s internal technical and manufacturing operations, which will become Oxford Biomedica Solutions and incorporate its
proprietary ‘plug and play’ process development and manufacturing platform.
The transaction is expected to close in Q1 2022, subject to the satisfaction of certain closing conditions.
Author: Rare Daily Staff
Sign up for updates straight to your inbox.