China’s 3SBio Inc has agreed to buy the contract development and manufacturing unit of Canada’s Therapure Biopharma Inc for US$290 million, part of a push by the Chinese biotech company into the North American market.
The deal, being done through a venture set up by 3SBio and CITIC Private Equity investment, fits with a push by Chinese drug-makers and biopharmaceutical companies to increase their role in the global market.
“3SBio’s global expansion strategy is now on fast track,” Jing Lou, chairman of 3SBio, said in a statement on Sunday.
“We intend to accelerate the development and commercialization of innovative products toward our ultimate goal of benefiting patients around the world.”
3SBio, a major Chinese biopharmaceutical business with a focus on oncology, auto-immune diseases and nephrology, will also get some rights to Therapure’s plasma products and technology for the Chinese market, the Canadian company said in a separate statement.
The Chinese company and its private equity partners will also invest an additional $20 million to $25 million (US$16.1 million to US$20.2 million) in Therapure’s plasma protein and therapeutics business to fund the construction of a new facility.
The contract development and manufacturing unit, Therapure Biomanufacturing, will continue to operate under the Therapure brand and be led by Therapure’s current chief executive, Nick Green, and the current senior management team at its manufacturing facilities in Mississauga, Ontario.
Therapure, controlled by Canadian private equity firm Catalyst Capital Group, was advised on the deal by Wells Fargo Securities as its exclusive financial adviser.
Catalyst will retain ownership of Therapure’s plasma protein and therapeutic products business as a separate entity.
Update: Therapure was launched by Catalyst in 2008.
In 2015, the company filed for an IPO and subsequently priced it to raise about $130 million. The issue, which included a secondary sale by Catalyst, was postponed in early 2016 due to prevailing conditions in public markets.
Therapure is chaired by Gabriel de Alba, a Catalyst managing director and partner.
(Reporting by Adam Jourdan; Editing by Amrutha Gayathri)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Reuters/Manuel Balce Ceneta