CJ Cheiljedang diversifies biz with $226m Batavia buy

CJ Cheiljedang has entered the biopharma CDMO space through the acquisition of Batavia Biosciences.

The deal, which is worth $226 million, sees CJ Cheiljedang, a subsidiary of South Korea’s food and entertainment corporation CJ Group, acquire Netherlands-based contract development manufacturing organization (CDMO) Batavia Biosciences to drive its position in the biotechnology field.

Batavia is a CDMO which specializes predominantly in viral vaccines and viral vector products. It also has capabilities for monoclonal antibodies (mAbs) and recombinant protein development.

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“We identified next generation biotherapeutics CDMO business to be our future growth driver, and believed this transaction presents an ideal new business opportunity for CJ CheilJedang to diversify our existing business portfolio,” a spokesperson for the firm told us.

“As a global biopharmaceutical CDMO with an extensive track record in viral vaccine and virotherapy process development and manufacturing, Batavia offers a portfolio of unique technologies and know-how in to rapidly and cost-effectively manufacturing these products to many partner companies. We expect this acquisition to be a stepping stone in becoming a global leader in the next generation biotherapeutics CDMO business. Long term we hope to strengthen the Group’s bio business portfolio and create synergies with other wellness related businesses.”

According to various publications such as The Korea Economic Daily, CJ Cheiljedang will own 75.8% of CDMO Batavia through purchasing 50,807 shares.

Through the acquistion, CJ Cheiljedang will gain Batavia’s main facility in Leiden, the Netherlands, an operations unit in Massachusetts, US and a sales office in Hong Kong.

Batavia’s two founders will remain as managers of the firm and as minority shareholders to establish the company’s strategic business plan and future growth. A spokesperson for Batavia said “CJ CheilJedang’s investment allows Batavia Biosciences to accelerate its growth ambition to become one of the largest global biopharmaceutical CDMOs.”

Batavia entered a partnership with Swiss start-up RocketVax (a subsidiary of Swiss Rockets AG) in July to use its HIP-Vax manufacturing technology to develop and deliver 1000 doses of COVID-19 vaccine candidate RVX-13.

CJ Cheiljedang said no collaborations will be affected by the acquisition.