Production & Manufacturing

Therapure Biopharma to sell CDMO business to 3SBio

PBR Staff Writer Published 04 September 2017

Canada-based Therapure Biopharma has agreed to divest its contract development and manufacturing (CDMO) business to a joint venture between Chinese biotechnology company 3SBio and CPE Funds for $290m.

The deal will also see the Canadian firm sell certain rights to plasma products and technology to the joint venture pertained to the Chinese market.

The acquisition will enable 3SBio to enter into the North American biopharmaceutical sector, as part of its strategy towards becoming a worldwide leader in biologics.

3SBio chairman Dr. Jing Lou said: “The acquisition effectively integrates our mammalian cell culture capabilities and Therapure's downstream purification and plasma source technologies.

“The combination of Sunshine Guojian's 38,000-liter production capacity, Sirton's production and service capabilities and Therapure's competitive advantages will deliver enormous synergies in both operations and profitability.”

Post acquisition, the CDMO business will continue to be run under the Therapure name and headed by Therapure CEO Nick Green and the current senior management team. Its manufacturing facilities will remain in Mississauga, Ontario.

The transaction will enable further growth and expansion of 3SBio and Therapure in high growth segments of the market through the combined capabilities, according to Green.

Green added: “This will put us in a stronger position to lead, innovate and grow, and further support our current and future clients."

The Catalyst Capital Group, which controls Therapure, will retain ownership of the company and support future investments in its plasma protein and therapeutic products business, which will be spun off as a separate entity called ProductsCo.

The joint venture under the agreement terms with Therapure will provide at least an additional C$20-25m ($16.1-20.1m) to ProductsCo for the construction of a new commercial facility.

The transaction is subject to approval of the shareholders of 3SBio and is anticipated to be closed by the year end.