Biotage AB acquires Astrea Bioseparations for $235m
Gamma Biosciences’s operating company, Horizon Park-based Astrea Bioseparations, has been acquired by Swedish life sciences company Biotage AB for $190million and up to $45m in milestone-based cash payments.
The acquisition – conditional on Biotage’s shareholder approval and subject to customary closing conditions – involves newly-issued shares in Biotage. As part of the acquisition, Gamma will make a capital injection of approximately $25m in Astrea. KKR-controlled Gamma is expected, following completion of the transaction, to become the largest shareholder in Biotage, with approximately 17 per cent of shares outstanding.
KKR is a New York-based global investment firm founded in 1976 offering alternative asset management as well as capital markets and insurance solutions. KKR created Gamma Biosciences in 2019 as a life sciences platform whose operating companies provide products and services to support the development and manufacturing of advanced biologic therapies. These operating companies – such as Astrea – are focused on advancing the science and art of bioprocessing by delivering market-ready innovation and expertise to support customers, mainly biopharmaceutical developers and contract development and manufacturing companies, safely and efficiently bring therapies to patients.
“This move brings together two highly regarded and complementary businesses creating a differentiated player in the field of chromatography,” said Matt Gunnison, CEO of Gamma Biosciences.
The outcome is the creation of “a global chromatography leader with an attractive mix of products and services across multiple end-markets globally”.
Gamma Biosciences acquired Astrea (founded as Prometic Bioseparations Ltd in 1987) in late 2019 and has since grown the company into a leading global platform through organic investment and synergistic acquisitions.
Astrea supports drug developers and manufacturers in bringing high-purity biopharmaceuticals and advanced therapeutics to the market globally. The company supplies chromatography resins, adsorbents and columns as well as nanofiber-based purification technologies for biomanufacturing. Astrea has products used in the manufacture of more than 20 FDA approved treatments and a strong pipeline oriented towards purification of novel modalities. The company is headquartered in Cambridge, UK, with manufacturing facilities at the Isle of Man, Joliette, Quebec, and Massachusetts in the US.
The combination extends Biotage’s chromatography franchise into the higher-growth and larger bioprocessing segment, increasing its exposure to biologics and advanced therapeutic customers.
Astrea also strengthens Biotage’s financial profile through its highly accretive organic growth rate, strong gross margins and significant exposure to recurring consumables-based revenues. In addition, the acquisition brings a rich, near-term pipeline of new product launches across chromatography resins, nanofiber-based membranes and columns.
Matt Gunnison noted: “Astrea is quickly becoming one of the leaders in its field with an incredible pipeline of innovation targeting advanced therapeutics. We are excited to join forces with the team at Biotage and leverage the strong foundation that they’ve established to rapidly grow these businesses together.”
Terry Pizzie, CEO of Astrea, said: “Biotage and Astrea have a strong alignment in terms of core values, market reach, and long-term growth potential, making this union a great fit for both sides.
“We are confident that by joining together we will create a powerful platform for innovation and success in the biopharmaceutical industry, and will further accelerate Astrea’s trajectory of rapid growth and expansion.”
Tomas Blomquist, CEO and president at Biotage, said: “We are proud to welcome the Astrea Bioseparations team to Biotage.”
