Zydus Lifesciences will acquire biologics facilities from Agenus in California, marking its global CDMO debut and expanding its presence in the US biopharma market.

Zydus Lifesciences is set to take over biologics manufacturing units in California currently operated by US-based Agenus Inc. With this deal, the Indian pharmaceutical company would enter the global biologics contract development and manufacturing market for the first time.

The Ahmedabad-based firm said in a news statement that Zydus will purchase two biologics production facilities from Agenus in Berkeley, California, and Emeryville, California, for $75 million upfront and $50 million spread over three years, contingent on hitting a specific revenue target.

The goal of the clinical-stage immuno-oncology startup Agenus is to create immunological treatments for cancer. According to the company, Zydus will be able to establish a strong presence in California, a key global center for biotechnology, and have access to state-of-the-art biologics production capabilities through this acquisition.

"The deal will give the company a vital presence in the US biologics manufacturing space, specifically in California, an international hub for biotech advancements," said Sharvil Patel, Managing Director of Zydus Lifesciences.

Additionally, Zydus will be able to use supply chain dynamics to increase its worldwide and US presence thanks to the deal. The manufacturing capabilities that Zydus has purchased will be housed under its contract development and manufacturing company, which will function independently.

Zydus will serve as the sole contract manufacturer for Agenus, providing both clinical and commercial production support for two immuno-oncology drugs, Botensilimab and Balstilimab, which are nearing Phase 3 trials. Additionally, Zydus will have the first say in negotiations to produce any pipeline items that Agenus develops in the future.