Top-selling cell therapies from BMS, J&J and Gilead depend on a BioLife product, positioning Repligen to use the takeover to increase its exposure to the modality.
Repligen has inked a $1.5 billion deal to buy BioLife Solutions for a product that preserves cell therapies during storage and transport.
BioLife has refocused on cell processing tools in recent years, divesting multiple units and putting the CryoStor cryopreservation media at the heart of its business. Cell therapies such as Johnson & Johnson’s Carvykti, Gilead Sciences’ Yescarta and Bristol Myers Squibb’s Breyanzi use BioLife products. Most Phase 2/3 assets in the clinic use the products, too, and switching late in development is time-consuming and expensive.
Repligen CEO Olivier Loeillot cited the commercial and pipeline programs when explaining the rationale for the takeover. On a conference call with investors Wednesday, Loeillot said Repligen is confident that commercial cell therapies will grow more than 20% over the next five years. With cell therapies emerging as a key piece of the biopharma industry’s R&D pipeline, Repligen concluded it needed to strengthen in the area, Loeillot said.
The takeover is “a great fit for Repligen” and “checks a lot of the key boxes needed for a successful deal,” William Blair analysts said in a note to investors. The analysts’ positive response to the takeover reflects BioLife’s “industry-leading products that serve a critical need” in a large, growing market, as well as the deal’s strong strategic rationale and portfolio fit.
Once the deal closes, new modalities will account for about 25% of Repligen’s revenue, up from less than 20% today. New modalities have been a key focus for the company over the past few years, William Blair said. Growth in new modalities “has been trending in a positive direction in recent quarters,” according to the analysts, and the sector has benefited from positive funding and regulatory developments.
Repligen is paying a “reasonable” price for BioLife, the group added. Based on 2027 consensus revenues of $135 million, the deal price is roughly 11 times BioLife’s sales. That is “a slight premium” over similar deals, which have commanded high-single-digit multiples, the analysts said. The $1.5 billion buyout price comprises 64% Repligen stock and 36% in cash.
Synergies are part of the business case for the price, with Repligen aiming to save $20 million in the first year and $30 million by the second year. Revenue synergies are possible, too, with Repligen identifying chances to cross-sell to the overlapping customer bases and to use its infrastructure to help BioLife win business in the Asia-Pacific region.
