Emergent BioSolutions said on Thursday it would expand its reach in the public health threats market by acquiring PaxVax, a company that develops specialty vaccines that protect against infectious diseases, including typhoid fever and cholera.
Included in the purchase will be the typhoid fever vaccine Vivotif, which is licensed for sale in 27 countries. It is the only oral vaccine approved by the Food and Drug Administration (FDA) for use against Salmonella typhi, the most common of the typhoid fever-causing bacteria. Typhoid fever is a severe and potentially life-threatening infection caused by ingesting contaminated food or water. Millions of people are affected by typhoid fever each year, including international travellers and people living in low- and middle-income countries.
The company will also acquire Vaxchora, the only FDA-licensed vaccine in the United States for the prevention of cholera, a potentially serious intestinal disease. Cholera is transmitted by ingestion of food and water contaminated with Vibrio cholerae, which may cause diarrhea and could be severe and life-threatening in some individuals. In May 2017, the Centers for Disease Control and Prevention (CDC) published its recommendation for the use of Vaxchora in adults traveling to areas of active cholera transmission, according to Emergent.
Further, Emergent will acquire a vaccine candidate that is being funded by the U.S. Department of Defense and that will protect the U.S. military against adenovirus types 4 and 7, common causes of acute respiratory disease. The company said the vaccine pipeline includes other clinical-stage vaccine candidates targeting Chikungunya, which is spread by mosquitoes, and other emerging infectious diseases.
Emergent said it entered into an agreement to acquire PaxVax, which is majority owned by Cerberus Capital Management, for $270 million. The transaction, subject to certain regulatory approvals, is expected to close in the fourth quarter of 2018.
As part of the deal, Emergent will also acquire PaxVax’s European-based cGMP biologics manufacturing facilities.
“The acquisition of PaxVax solidifies our position as a global leader in the public health threats market, expands our portfolio of only-in-class products, advances our growth strategy, and progresses us towards the achievement of our 2020 financial and operational goals,” Daniel Abdun-Nabi, CEO of Emergent BioSolutions, said. “We look forward to continuing to drive growth in the business by building on the successes of PaxVax in the travelers market, leveraging our core competencies in government contracting and manufacturing, and advancing the development pipeline while remaining disciplined in our approach to R&D.”
The transaction supports Emergent’s strategy to grow through products that focus on public health threats and emerging infectious diseases. Also, Emergent will expand its global commercial salesforce and strengthen its manufacturing capabilities.
“We are very pleased to unite two companies with a shared mission — protecting civilian and military populations with innovative vaccines addressing a broad range of public health threats,” said Nima Farzan, chief executive officer and president of PaxVax. “Bringing together PaxVax’s rich portfolio of commercialized vaccines and robust pipeline of vaccines for diseases including adenovirus and chikungunya, with Emergent’s global capabilities will create the world’s largest independent specialty vaccine company.”