Gamma Biosciences, a KKR-formed life sciences platform, has taken a major step in the advanced therapy market with its agreement with Swedish life sciences company Biotage AB. Under the agreement, Biotage will acquire Gamma’s operating company, Astrea Bioseparations, in exchange for newly issued shares, forming a global chromatography leader with a wide range of products and services across multiple end-markets. This move positions Gamma and Biotage to dominate the market, providing unparalleled access to advanced bioprocessing solutions.
At Astrea, we are dedicated to helping drug developers and manufacturers bring the highest-quality biopharmaceuticals and advanced therapeutics to the market worldwide. Our range of chromatography resins, adsorbents, columns, and nanofiber-based purification technologies provide the cutting-edge solutions needed to get the job done right.
Biotage is expanding its chromatography franchise and entering the higher-growth bioprocessing segment with the acquisition of Astrea, providing greater exposure to biologics and advanced therapeutic customers. Not only does this move strengthen their financial profile with its highly accretive organic growth rate, attractive gross margins, and recurring consumables-based revenues, but also brings a robust near-term pipeline of new product launches such as chromatography resins, nanofiber-based membranes and columns.
Gamma Biosciences is thrilled to come together with the team at Biotage to create a powerful, differentiated player in chromatography. By combining two highly regarded businesses, we can unlock an incredible pipeline of innovative solutions for advanced therapeutics. Under the leadership of Matt Gunnison, CEO of Gamma Biosciences, we are confident that this merger will rapidly grow both of our businesses.
Gamma Biosciences has made a striking transformation of Astrea (formerly Prometic Bioseparations Ltd) since its acquisition in late 2019. Through organic investments and synergistic acquisitions, the company has grown into a leading global platform.
The union of Biotage and Astrea is a powerful platform for innovation in the biopharmaceutical industry, with both sides aligned in terms of core values, market reach, and long-term growth potential. By joining together, Astrea is poised to further accelerate its rapid growth and expansion. Terry Pizzie, CEO of Astrea, expressed his confidence in the union: “We are confident that this union will create a powerful platform for innovation and success in the biopharmaceutical industry, and will further accelerate Astrea’s trajectory of rapid growth and expansion.”
Biotage and Gamma, the KKR-controlled company, have reached a deal that will see Gamma inject approximately $25M into Astrea. Upon closing, Biotage will pay roughly $190M in shares, subject to any adjustments, and up to $45M in cash payments based on milestones. Upon completion of the deal, Gamma will become the biggest shareholder in Biotage, owning around 17.0% of the company’s outstanding stock.
Tomas Blomquist, CEO and President at Biotage, was elated to announce the acquisition of Astrea Bioseparations into the Biotage family. He believes this strategic union is a great opportunity for Biotage, as it will add a high-growth company with a talented global team, and decades of experience, to the existing Biologics and Advanced Therapeutics business. This move will ensure Biotage remains well-positioned for a successful future.
KKR is ecstatic to witness Gamma’s successful approach to transforming burgeoning bioprocessing enterprises into flourishing strategic investments. The collective resources of Biotage and the remaining assets in Gamma’s portfolio can provide vast opportunities for growth. Kugan Sathiyanandarajah, Managing Director at KKR and Head of Europe for KKR’s Health Care Strategic Growth strategy and Anuv Ratan, Director at KKR, are both hopeful for the future.
Subject to customary closing conditions and the approval of Biotage’s shareholders, this transaction is ready to move forward.
About Gamma Biosciences
Gamma Biosciences is a revolutionary life sciences platform created by KKR, revolutionizing the process of developing and manufacturing advanced biologic therapies. Our operating companies provide customers, such as biopharmaceutical developers and contract development and manufacturing companies, with the products and services needed to bring the best possible therapies to patients. We are dedicated to advancing bioprocessing, ensuring that innovative and expert solutions are readily available to help bring treatments to those who need them safely and efficiently.