Sector News

Thermo Fisher shoulders into gene therapy manufacturing with $1.7B deal for Brammer

March 26, 2019
Life sciences

With gene therapies becoming a hot growth area, CDMOs are figuring out how to get a bigger piece of the market. Thermo Fisher Scientific decided to buy its way in, agreeing to pay $1.7 billion to get viral vector producer Brammer Bio.

The cash deal, slated to close by the end of the second quarter, will see Waltham, Massachusetts-based Thermo Fisher picking up manufacturing locations in Massachusetts and Florida, along with 600 employees. Brammer is owned by Ampersand Capital Partners.

Cambridge-based Brammer Bio, which has undertaken 100 projects, is expected to produce $250 million in revenue this year and outrun the market growth rate of 25% for the midterm, the companies said. Thermo Fisher says the deal should add about $0.10 per share in the first full year of ownership.

Michel Lagarde, president of Thermo Fisher’s pharma services, said the combination of the two companies can only strengthen both their positions in the burgeoning field.

Novartis, Gilead and Spark Therapeutics already have gene therapies approved in the U.S., and several more of the potential cures are wending their way through the development and approval processes. Novartis is looking for a second gene therapy approval soon for spinal muscular atrophy treatment, Zolgensma.

Many gene therapy biotechs are committing money to building their own specialized manufacturing facilities while also looking for redundancy from contractors. Swiss CDMO giant Lonza expanded its offerings last year when it opened a 300,000 square foot facility in the Houston, Texas, suburb of Pearland, which it claims is the largest dedicated cell-and-gene-therapy manufacturing facility in the world.

Brammer saw the potential early. It was formed in 2016 through the merger of Brammer Biopharmaceuticals and Alachua, Florida-based Florida Biologix, saying at the time it would invest about $50 million in a 50,000-square-foot facility in Lexington for the production of late-stage and commercial-scale viral vector and cell-based therapies.

It also bought a 67,000-square-foot manufacturing facility in Cambridge from Biogen in 2016. A spokesperson said in an email today that the Florida site includes preclinical and clinical viral vector manufacturing, process and analytical development laboratories and quality control laboratories. The facilities in Cambridge and Lexington support commercial-ready cGMP manufacturing of viral vectors.

By Eric Palmer

Source: Fierce Pharma

comments closed

Related News

February 4, 2023

MedTrace receives U.S. patent for diagnosing the human heart

Life sciences

The U.S. Patent and Trademark Office issued a patent to MedTrace for their method of diagnosing the human heart via 15O-water PET. The patented method is the foundation of the company’s software aQuant, currently under development. Hendrik “Hans” Harms, PhD and Senior Scientist at MedTrace, and Jens Soerensen, Professor and Clinical Advisor to MedTrace, are the originators of the method.

February 4, 2023

Roche taps insider Teresa Graham for top pharma job as setbacks prompt M&A questions

Life sciences

Teresa Graham, currently head of global product strategy for Roche pharma, will become the division’s new CEO next month, Roche said Thursday. Simultaneously, Roche is elevating Levi Garraway, chief medical officer, to the executive committee.

February 4, 2023

J&J’s pharma group quietly works through global overhaul, with layoffs expected to reach multiple countries

Life sciences

Fierce Pharma has obtained internal documents and video of a town hall meeting conducted this week describing what J&J called a “comprehensive review” of its portfolio. Moving forward, J&J plans to operate its vaccines and infectious diseases outfits as one group, the executives explained.

How can we help you?

We're easy to reach