eureKING, a special purpose acquisition company (SPAC) established last year with a substantial investment of over âŹ150 million, has finalized an agreement to acquire SCTbio as part of its strategic plan to establish a specialized contract manufacturing enterprise focused on biologic therapies.
In exchange for slightly more than âŹ13 million, eureKING is purchasing SCTbio, a 13-year-old company that offers cell and gene therapy manufacturing services, along with logistical and regulatory support to bio pharmaceutical clients. The acquisition involves eureKING obtaining a 67% stake in SCTbio through a cash payment, while the remaining one-third ownershipâcurrently held by Czech investment group PPF Biotechâwill be procured through newly issued eureKING shares. This process will eventually lead to eureKING assuming complete control of SCTbio.
In addition to the SCTbio acquisition, eureKING has already secured an arrangement to purchase Skyepharma, another contract bio manufacturing firm, for an undisclosed sum. The company is also actively seeking additional assets as it pursues its goal of establishing a dominant presence in the European contract development and manufacturing organization (CDMO) market.
âThis is a key transaction for eureKINGâs vision of becoming a new European bio-CDMO leader and contributing to Europeâs ongoing critical need for sovereignty in the bio-manufacturing value chain. SCTbio is a highly regarded manufacturing partner in the business and has a facility with proven credibility among pharma and biotech companies built over the past decade. By acquiring SCTbio and combining it with Skyepharma, we intend to build a solid network of production capacity in Europe with global reach, based on cutting-edge clinical and industrial bioproduction capacity. Our momentum keeps us growing and we are eager to begin working with the talented professionals at SCTbio.â
– Michael Kloss, Co-Founder and CEO of eureKINGÂ
The amalgamated company will enter a diverse sector characterized by numerous participants, while only a few larger companiesâincluding Lonza, Boehringer Ingelheim, Catalent, WuXi Biologics, and Samsung Biologicsâhold a combined share of just over 25% of the total CDMO market.
PPF meanwhile said the transaction would allow it to “participate in the creation of a new European leader in the field of biotech manufacturing, whose shares will be traded on the Euronext stock exchange in Paris.”
Among the founders of eureKING are former Sanofi CEO Gerard le Fur, experienced figures in the pharmaceutical industry Christophe Jean and Hubert Olivier, as well as Alexandre Mouradian and Rodolphe Besserve from the biotech investment group eureKARE.
âWe are delighted to enter into this agreement with eureKING. We were attracted to eureKINGâs and Skyepharmaâs expertise and proven track record in building and growing strong CDMOs. Together, we intend to combine our distinctive and complementary skills and capabilitiesto create the foundations for a CDMO network with industry credentials. Having a new, fully integrated bio-CDMO leader is the key to reinforcing the Europeâs strategic biomanufacturing capabilities.â
– LudÄk Sojka, CEO of SCTbioÂ
The SPAC avenue to achieve a public listing is becoming increasingly popular among bio pharmaceutical companies as an alternative to traditional initial public offerings (IPOs). This approach can be more expedient, streamlined, and cost-effective, although it may entail less scrutiny of a company’s financials, obligations, and operational processes.
