Emergent BioSolutions acquires Sanofi smallpox vaccine, facilities

Sanofi’s ACAM2000 and associated contracts are now in the possession of Emergent BioSolutions Inc, following payment of a $117.5 million acquisition.

In all, Emergent has gained control of the only smallpox vaccine approved by the U.S. Food and Drug Administration, a cGMP live viral manufacturing facility, office, and warehouse in Canton, Massachusetts, and a cGMP viral fill/finish facility in Rockville, Maryland. In addition to the new product and associated facilities, the company has also pledged to take on an existing Sanofi contract with the Centers for Disease Control and Prevention (CDC), which requires the delivery of ACAM2000 to the Strategic National Stockpile and creation of U.S.-based manufacturing. The $425-million, 10-year contract still has a remaining value of about $160 million.

“Emergent is pleased with the closing of this transaction, which expands our portfolio of revenue-generating products, strengthens our manufacturing capabilities, and grows our workforce of talented and committed professionals,” Daniel J. Abdun-Nabi, president and CEO of Emergent BioSolutions, said. “We look forward to integrating the ACAM2000 business into our operations and working with the U.S. government to ensure an uninterrupted supply of ACAM2000 to the SNS.”

While the financial results for Emergent will be released in November, the company paid $97.5 million upfront and established $20 million in milestone payments that are tied to regulatory and manufacturing-related goals. The company noted, however, that product deliveries for the CDC contract are tied to FDA approval of a supplemental Biologics License Application.

Emergent anticipates a follow-up contract with the CDC after its current project expires in 2018.