Recipharm Announces Acquisition of Vibalogics & Arranta Bio

Recipharm is continuing to build its service offerings in new biologic modalities through the acquisition of Vibalogics, a virotherapy CDMO and a portfolio company of Ampersand Capital Partners. Vibalogics holds a leading position in the manufacture of oncolytic viruses, viral vaccines and gene therapies, offering process and analytical development, manufacturing, testing and fill-finish services.

Vibalogics is responding to the rapidly growing biopharmaceutical industry demand for specialized CDMO capabilities for the manufacture of live viruses and viral vectors including Herpes Viruses, Pox Viruses, Adenoviruses, and other viral classes for cancer and other applications. The company has seen rapid growth of its global customer base comprised of Big Pharma, mid-sized biotechs and start-ups requiring its unusual process expertise, capabilities and capacity for virus production. Continued investment, including its recent expansion in Germany and the US, has positioned Vibalogics to support the full product lifecycle of its clients, including commercial supply.

The deal will provide Recipharm with capabilities in new biologics modalities, leveraging Vibalogics’ expertise in oncolytic viruses, viral vaccines, and viral vector gene therapies to bring a high degree of diversification across multiple technologies and modalities. Vibalogics builds on the capabilities acquired through the recently announced GenIbet transaction and the acquisition of Arranta Bio, also announced today.

Marc Funk, Chief Executive Officer at Recipharm, said “We are excited by the opportunities that are already apparent from working with true pioneers in the area of virotherapy manufacturing. We are delighted to welcome our new colleagues from Vibalogics to Recipharm and are committed to support and even accelerate growth in the years to come and to continue to partner with customers in virus manufacturing solutions. This acquisition strengthens Recipharm’s presence in ATMPs and enables us to get closer to our US customers. We look forward to working with the Vibalogics team, building links across the wider Recipharm organisation to make this business a huge success.”

Tom Hochuli, CEO at Vibalogics, added “Since 2006 Vibalogics has developed a specialized CDMO business and a leading virotherapy manufacturing platform that has contributed to advancing our customers’ products through development and into global clinical trials, all made possible by our dedicated employees and investors. We are excited to be joining the Recipharm organization and having the opportunity to leverage the breadth and depth of its world leading infrastructure and experience.  This furthers our commitment to supporting our customers and the patients who benefit from the exciting developments we are witnessing in the virotherapy field.”

Centerview Partners UK LLP acted as exclusive financial adviser, and Kirkland & Ellis LLP served as counsel to Recipharm on the transaction. Morgan Stanley & Co. LLC acted as exclusive financial advisor and Goodwin Procter LLP served as counsel to Vibalogics.

Recipharm also announced the acquisition of Arranta Bio, a prominent advanced therapy CDMO. Under the stewardship of Mark Bamforth and backed by Ampersand Capital Partners, the company has established a strong service portfolio as a leader in delivering microbiome therapeutic products and mRNA clinical production capabilities.

The acquisition forms a cornerstone of Recipharm’s strategy to provide innovative drug developers in the Biologics market with scientifically differentiated contract development and manufacturing services for ATMPs and builds on the capabilities acquired through the recently announced GenIbet transaction and the acquisition of Vibalogics, also announced today.

Arranta Bio has established a strong microbiome platform with fermentation and purification expertise for naturally-derived and engineered bacteria consortia, complemented by services in analytics, proprietary media and cryopreservative formulations. These services maximize yields and enhance viability for live biotherapeutic products that clients are testing in the clinic against a range of infectious, inflammatory, neurological and oncological diseases.

In addition, Arranta Bio is progressing the supply of end-to-end mRNA capabilities across drug substance and drug product under one roof, providing its customers with substantial time savings in product manufacturing and a hedge against supply chain challenges.

The acquisition of Arranta establishes a robust US presence for Recipharm. It provides the company with a further platform from which to build its capabilities in new biologics modalities, leveraging Arranta’s expertise in advanced therapies to bring a high degree of diversification across multiple technologies and modalities.

Marc Funk said “We welcome Arranta and its team of experts who boast a strong reputation in the CDMO industry. Arranta is a leading player in its field that we are proud of bringing under the Recipharm umbrella and continue to build in line with our vision of supporting biotechs by providing process development, manufacturing expertise and bold solutions to take their programs from lab to patient. This acquisition is another important step for us in growing our biologics business and developing a strong presence into the US. We look forward to working closely with the Arranta team, building links across the wider Recipharm organization to make this business a huge success.”

Mark Bamforth, CEO at Arranta, added “I am convinced that Recipharm will be a great home for Arranta and our talented team and that together we can fulfil our joint vision of building the leading ATMP CDMO. We share Recipharm’s vision of focusing on ATMP customers with novel manufacturing solutions and we see a clear opportunity to accelerate to global scale in this new context.”

The acquisition is expected to be completed around the end of March 2022, subject to customary regulatory filings.

Centerview Partners UK LLP acted as exclusive financial adviser, and Kirkland & Ellis LLP served as counsel to Recipharm on the transaction. Morgan Stanley & Co. LLC acted as exclusive financial adviser and Goodwin Procter LLP served as counsel to Arranta Bio.

Recipharm is a leading Contract Development and Manufacturing Organization (CDMO) in the pharmaceutical industry employing almost 9,000 employees. Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, pharmaceutical product development and development and manufacturing of medical devices. Recipharm manufactures several hundred different products to customers ranging from big pharma to smaller research and development companies. The company operates development and manufacturing facilities in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden, the UK and the US, and is headquartered in Stockholm, Sweden. For more information, visit www.recipharm.com

Vibalogics is a specialized global Contract Development and Manufacturing Organization (CDMO) offering process and analytical development, manufacturing, testing and fill-finish services to innovators developing transformational virotherapy products.  From its headquarters and commercial facility in Boxborough, MA, USA and operations in Cuxhaven, Germany, Vibalogics supports its customers in the development and commercialization of oncolytic viruses, viral vectors for gene therapy and viral vaccines. For more information, visit www.vibalogics.com.

Founded in 2019, Arranta Bio is a visionary contract development and manufacturing organization (CDMO) that partners with companies seeking to develop and manufacture complex biological drugs and innovative therapies. Our dedicated team of about 170, state-of-the-art facilities, and unparalleled resources are crucial for advancing products from development to commercial launch. Arranta Bio continues to expand capacity and development and manufacturing services across multiple sites with technology platforms designed to meet the evolving demands of our clients and partners. For more information, visit www.arrantabio.com.