Grifols drops $1B on German holding company in continued plasma push
One Spanish biotech is beefing up its plasma therapy operations, and on Friday, it announced that it’s doing so in a billion-dollar deal.
Grifols is now the largest shareholder of Biotest, a company valued at more than $1.8 billion. By teaming up, the two will try to increase the number of plasma therapies available and increase patient access around the world, Grifols said in a press release.
The company did so by acquiring holding company Tiancheng Pharmaceutical, the Germany-based owner of nearly 90% of Biotest shares, for nearly $1.27 billion. Grifols now owns nearly 90% of Biotest voting rights and almost 45% of the total share capital of Biotest.
The move is expected to drive revenue growth by more than $8.2 million by 2024. It will allow the existing plasma-derived therapies in the portfolio to grow, and fast-track the development of new therapies, co-CEO Raimon Grifols Roura said in a press release.
It also spreads the company out geographically across the globe, as Biotest is based out of Germany, and the company is looking to branch its revenue stream out across Europe, the Middle East and Africa.
“This operation offers a singular opportunity to promote our European innovation hub and collaborate with an outstanding German firm renowned for its expertise in clinical development,” co-CEO Victor Grifols Deu said in a press release. “By joining forces, we aim to advance innovative scientific and plasma-derived developments that ultimately offer patients an enhanced quality of life.”
The deal will close by the end of Grifols’ first semester in 2022. Right now, Biotest is in clinical trials on a plasma-derived fibrinogen dubbed BT-524 that will treat congenital and acquired disorders, including an adjusted fibrinogen replacement strategy study in patients who have high blood loss during spine surgery, and abdominal surgery for pseudomyxoma peritonei. The company is also in clinical trials for the treatment of patients with community-acquired pneumonia.
Biotest can manufacture up to 1.5 million liters of plasma a year, and it has plans to double that amount in its 26 European sites in Germany, the Czech Republic and Hungary.
The move is a part of several made to expand Grifols’ footprint across the globe. In August, the company announced its second expansion into Africa in just a year, as it constructs an intravenous solutions plant in Nigeria. In early March, the company also put up $80 million to buy out the majority stake in GigaGen that it didn’t already own.