Will Downie, Vectura Group CEO (Vectura)

Three years af­ter piv­ot­ing out of dis­as­ter, Vec­tura gets a $1.4B pri­vate eq­ui­ty buy­out

Three years ago, af­ter a sec­ond of Vec­tura’s Phase III can­di­dates crashed and burned, the British biotech de­cid­ed that, you know, maybe this whole drug de­vel­op­ment thing wasn’t for them. They hired a new CEO from Catal­ent and an­nounced they would fo­cus on just help­ing man­u­fac­ture the drugs that oth­er com­pa­nies de­vel­oped.

That shift has now paid off hand­some­ly. Vec­tura an­nounced Wednes­day that the pri­vate eq­ui­ty firm Car­lyle Group agreed to buy them out for $1.4 bil­lion, or a 32% pre­mi­um on the com­pa­ny’s mar­ket val­ue en­ter­ing to­day. The price per share, $161, is more than dou­ble what Vec­tura $VEC trad­ed for in win­ter of 2018, be­fore they re­brand­ed as a CD­MO.

For Car­lyle, Vec­tura adds to a grow­ing sta­ble of biotech and drug de­vel­op­ment ser­vices the firm has built up over the last decade, since it ac­quired PPD, the mas­sive CRO, for $3.9 bil­lion in 2011. In 2017, they spent near­ly a $1 bil­lion for the CRO AM­RI, and added a ma­jor­i­ty stake in TriNetX three years lat­er. Last month, they shelled out $435 mil­lion for Un­chained Labs and their line of gene ther­a­py and vac­cine ser­vices.

Vec­tura, hav­ing tried to de­vel­oped asth­ma and COPD drugs, spe­cial­izes in in­haled med­i­cines. Now led by for­mer Catal­ent ex­ec Will Down­ie, they promise to help drug­mak­ers for­mu­late their mol­e­cules for in­halers or neb­u­liz­ers, while of­fer­ing ser­vices to help com­pa­nies scale up their man­u­fac­tur­ing process­es and an­a­lyze their fin­ished prod­ucts.

Late last year, they an­nounced plans to ex­pand their UK fa­cil­i­ties to tack­le a broad­er range of ser­vices.

Si­mon Dinge­mans

The com­pa­ny al­ready works with Bay­er, No­var­tis, and Glax­o­SmithK­line — against whom they re­cent­ly won a $90 mil­lion court bat­tle — among oth­ers. Si­mon Dinge­mans, man­ag­ing di­rec­tor of Car­lyle’s Eu­ro­pean buy­out ad­vi­so­ry group, ar­gued the buy­out would al­low them to ex­pand fur­ther.

“We have fol­lowed the strate­gic changes un­der­way at Vec­tura close­ly and ful­ly sup­port the fo­cus on build­ing a mar­ket lead­ing in­hala­tion spe­cial­ist CD­MO,” he said. “We be­lieve that un­der Car­lyle’s own­er­ship Vec­tura will be able to ac­cel­er­ate its trans­for­ma­tion sig­nif­i­cant­ly with greater ac­cess to cap­i­tal and the sup­port of our long ex­pe­ri­ence in the sec­tor.”

Un­lock­ing ESG strate­gies for growth with Gilead Sci­ences

RBC Capital Markets explores what is material in ESG for biopharma companies with the ESG leads at Gilead Sciences. Gilead has long focused on sustainability but recognized a more robust framework was needed. Based on a materiality assessment, Gilead’s ESG strategy today focuses first on drug access and pricing, while also addressing D&I and climate change. Find out why Gilead’s board is “acutely aware” of the contribution that ESG makes to firm’s overall success.

On the hunt for the next Mod­er­na, in­vestors have pumped 'plat­form plays' with cash. Can any­thing slow the run­away train?

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Kimberly Smith, ViiV via Youtube

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Sen. Ron Wyden (D-OR) with reporters in the Senate Subway (Graeme Sloan/Sipa via AP Images)

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Pier Vincenzo Colli, Alfasigma CEO (C. Romagnoli, Alfasigma archive)

Al­fasig­ma snares EU rights to blood clot­ting an­ti­body on the hunt for pa­tients tak­ing As­traZeneca's Bril­in­ta

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Endpoints News turned five years old over the weekend. I wanted to mark the happy occasion by extending our deepest gratitude to Endpoints’ premium subscribers while outlining several other ways to support us as we go broader and get bigger this year and beyond.

Same as any business, we’ve got to create value and get paid for delivering it. So if you depend on Endpoints to stay abreast on biopharma developments, we depend on you too.

Emma Walmsley, GlaxoSmithKline CEO (Credit: Fang Zhe/Xinhua/Alamy Live News)

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Fred Upton and Diana DeGette

New DARPA-like NIH agency preps for re­al­i­ty as E&C un­veils bi­par­ti­san Cures 2.0 draft bill

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Ken Frazier, Merck CEO (Bess Adler/Bloomberg via Getty Images)

Mer­ck­'s Keytru­da blazes a path in first-line cer­vi­cal can­cer, mak­ing good on drug­mak­er's push for ear­li­er pa­tients

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