Catalent To Buy Cell Therapy CDMO MasTherCell For $315M

Catalent Inc CTLT, a contract development and manufacturing organization, or CDMO, that provides services for the development of drugs, biologics, gene therapies and consumer health products, said Monday it has agreed to buy MasTherCell Global for $315 million in cash.

MasTherCell is a privately held cell and gene therapy CDMO that has the backing of Great Point Partners, SFPI-FPIM and Organogenesis Holdings Inc ORGO.

"MaSTherCell extends our leadership position in the biotech industry, complements our leading gene therapy offering, and allows us to deliver comprehensive development, manufacturing, analytical, fill-finish, and clinical supply solutions for innovators across the large molecule space," Catalent CEO John Chiminski said in a statement.

"Catalent is well-positioned to combine MaSTherCell's expert teams and capabilities with our extensive resources and experience in scaling new platforms, and to help MaSTherCell build-out its development and commercial manufacturing capabilities."

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The transaction is expected to be completed in the third quarter of Catalent's fiscal year 2020. Upon completion of the proposed transaction, MaSTherCell's 240 employees, including its leadership, will become part of the Catalent Biologics business.

Catalent said it expects to finance the all-cash deal with either a partial drawdown of its revolving credit facility or the proceeds from future capital-raising activity.

Catalent's Q2 Results

Separately, Catalent reported fiscal-year 2020 second-quarter results, showing 16% revenue growth and adjusted earnings per share that remained flat at 45 cents. The results exceeded estimates.

The company also raised its fiscal year 2020 guidance range, citing continued growth in its recently acquired gene therapy business and the acquisition of Bristol-Myers Squibb Co BMY's biologics, sterile and oral solid dose product manufacturing and packing facility in Italy.

Catalent shares were rising 2.88% to $62.90 at the time of publication Monday.