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Catalent announced Monday that it would buy $ 1.2 billion from Paragon Bioservices, a private company focused on gene therapy, to help the drug developer develop its capabilities in specialized and expensive therapies .
Paragon, backed by private equity firms Camden Partners and NewSpring Capital, is focused on developing and manufacturing products such as complex biopharmaceutical products for its customers.
Catalent also develops drugs for other companies and operates in Asia, Europe and North and South America.
The agreement follows other multi-billion dollar contracts, with pharmaceutical companies aggressively embarking on the $ 40 billion potential gene therapy market, where rare genetic diseases are being sold for some of the highest prices.
In February, the Swiss drug manufacturer Roche agreed to buy US-based gene therapy specialist Spark Therapeutics for $ 4.3 billion, while Novartis bought out US-based Avexis. United, for $ 8.7 billion last year.
Catalent expects the transaction to add to its adjusted earnings in the second full year after closing.
The company has announced that it will finance the transaction with the proceeds of a $ 650 million additional term loan and the issuance of $ 650 million of a new series of loans. convertible preferred shares.
After the conclusion of the agreement, Paragon will be led by its managing director, Pete Buzy.
The Wall Street Journal reported Sunday that Catalent had agreed to buy Paragon.
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