Catalent to acquire leading gene therapy company

Contract drug manufacturer Catalent has announced it is to acquire leading gene therapy company Paragon Bioservices for $1.2 billion.

The deal has been made to enhance Catalent’s biologics business and is another example of the growing interest in gene therapies from pharma players.

“Paragon’s unparalleled expertise in the rapidly growing market of gene therapy manufacturing will be a transformative addition to our business that we believe will accelerate our long-term growth. Paragon brings to Catalent a complementary capability that will fundamentally enhance our biologics business and our end-to-end integrated biopharmaceutical solutions for customers,” said John Chiminski, Catalent’s chair & chief executive officer. “We look forward to working with Paragon’s incredibly talented team and world-class customers to complete the significant ongoing investments into expanded state-of-the-art facilities and deliver revolutionary, lifesaving treatments to patients.”

Paragon has operated within the pharma space for over 25 years and is specialised in adeno-associated virus (AAV) vectors, the most commonly used delivery system for gene therapy, as well as unique capabilities in GMP plasmids and lentivirus vectors. Catalent hopes that Paragon’s expertise will help it capitalise on the growing gene therapy market, which is expected to reach over $35 billion in the US alone by 2026.

Pete Buzy, Paragon’s president and CEO, said: “Our existing investors, NewSpring Health Capital and Camden Partners, were extremely supportive in getting us to where we are today. We are excited to join forces with the leading drug development and manufacturing partner in our industry. This transaction will enable us to achieve our next stage of development and expand our capabilities and platform for the benefit of our customers and their patients.”