GVK Biosciences (GVK BIO), the discovery research and development organisation based in Hyderabad, India, has reached a definitive agreement to acquire Aragen Bioscience, a preclinical contract research organisation operating out of Morgan Hill, US and specialising in high-value biologics services.
No financial terms were disclosed for the deal, in which GVK BIO is acquiring the capital stock of Aragen Bioscience. It is the Indian company’s first international acquisition.
According to a report in India’s Business Standard, GVK is taking a 65% stake in Aragen Biosciences and will acquire the remaining 35% over a period of two years, leaving Aragen to function as a separate entity.
The privately held Aragen Bioscience brings to GVK BIO “world-class expertise” in large-molecule R&D services as well as a “unique and extensive” set of high-content biological services, the latter said.
Combined with the company’s established small-molecule discovery and development capabilities, the acquisition positions GVK BIO as a leading provider of integrated R&D services across both large- and small-molecule platforms, it added.
It also gives the company a significant US presence and a base for further expansion, while enabling Aragen to broaden its service offerings and opening up access both to GVK BIO’s global sales force and to new markets.
"As an increasing number of biotech and pharmaceutical companies focus on protein-based therapeutics and biosimilars, the acquisition of Aragen Bioscience will strategically enhance GVK BIO’s ability to offer high-quality R&D services to the industry from a seamless integrated platform”, commented the latter’s chairman, D S Brar.