Agenus selling U.S. manufacturing facilities to Zydus

Agenus (AGEN) plans to sell its U.S.-based biologics CMC facilities to Zydus Lifesciences. This acquisition marks Zydus’ strategic investment in U.S.-based manufacturing for biologics. Zydus will acquire two biologics manufacturing facilities from Agenus in Emeryville and Berkeley, California, for an upfront consideration of $75M and contingent payment of $50M to be paid over three years subject to achievement of certain revenue milestone. Zydus’ CDMO business will operate as an independent entity and will house the acquired manufacturing capabilities. As a part of the transaction, Zydus will become an exclusive contract manufacturer for Agenus and will provide manufacturing services for clinical and commercial supply of two identified Phase-3 ready immuno-oncology products, Botensilimab and Balstilimab. Zydus will also have first right of negotiation to manufacture any of the future pipeline products developed by Agenus.