Emergent BioSolutions said on Wednesday it plans to acquire GlaxoSmithKline’s (GSK) raxibacumab, a U.S. Food and Drug Administration (FDA)-approved monoclonal antibody used for the treatment of inhalation anthrax, in an all-cash transaction valued at up to $96 million.
Raxibacumab is approved for the treatment of inhalation anthrax due to Bacillus anthracis, a bioterrorism agent, in combination with antibiotics when alternative therapies are not available or deemed appropriate.
As part of the agreement, Emergent will assume responsibility for a multi-year contract valued at approximately $130 million with the Biomedical Advanced Research and Development Authority (BARDA) to supply the anthrax treatment to the U.S. Strategic National Stockpile (SNS), a repository of vaccines and treatments to be used in the event of a national emergency.
“The addition of this critical countermeasure further strengthens our leadership position in this market and expands our franchise of vaccines and therapeutics addressing Category A bioterrorism threats,” Daniel J. Abdun-Nabi, president and CEO of Emergent BioSolutions, said. “… As we focus on providing preparedness solutions to public health threats, we will continue to actively pursue additional acquisition opportunities that leverage our core competencies and drive growth.”
A highly-infectious disease, anthrax exposure has a mortality rate of up to 80 percent in some cases when treatment is not available, according to the U.S. Centers for Disease Control and Prevention (CDC). Due to Bacillus anthracis’ nature as a bioterrorism agent, governments throughout the world invest in countermeasures to protect the public from the threat of infection.
The all-cash transaction announced Wednesday will consist of a $76 million up-front payment and up to $20 million in product sale and manufacturing-related milestone payments, all of which would become due in 2019 and are subject to the availability of funding. Under the terms of the acquisition agreement, Emergent will purchase product from GSK to fulfill SNS deliveries under the current BARDA procurement contract and said it plans to transfer raxibacumab manufacturing to existing company facilities in Baltimore, Maryland, in 2020.
Gaithersburg, Maryland-based Emergent said it expects to negotiate a follow-up contract with the U.S. government to ensure the uninterrupted supply of the treatment to the SNS.
The transaction is subject to antitrust regulatory approval and is expected to close later this year.