Sexton Biotechnologies To Be Acquired By Biolife Solutions, Expanding Cell And Gene Therapy Portfolio
BIOLIFE SOLUTIONS HAS CONFIRMED IT WILL ACQUIRE ALL OUTSTANDING SHARES OF PRIVATELY HELD, SEXTON BIOTECHNOLOGIES.
The definitive agreement announced by BioLife Solutions is expected to close on or before the 1st September 2021 and includes a payment of $24.0 million in consideration for 506,382 newly issued shares of BioLife common stock. BioLife will reportedly retain 19.9% of the consideration due to Sexton shareholders.
BioLife has also stated that it plans to retain all Sexton team members and the current facility in downtown Indianapolis.
Mike Rice, CEO of BioLife, explained:
“As a significant shareholder of Sexton since their spinout from Cook Regentec in 2019, we’ve been closely following Sean Werner and the Sexton team’s great execution and progress. The business is at an inflection point and their products are highly complementary to our portfolio, enabling BioLife to strengthen relationships with our marquee base of cell and gene therapy developers. We welcome the Sexton team to BioLife and look forward to leveraging our respective strengths to accelerate growth across our platforms.”
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Executive Vice President & CSO at BioLife, Aby J. Mathew, continued:
“Sexton’s cell processing platform is novel and has the potential to disrupt traditional cell therapy manufacturing workflows by improving quality and efficiency while consolidating several processing steps. Their tools are synergistic with our portfolio and are supported by a growing body of literature that highlights the benefits of using Sexton’s solutions.”
The benefits of the acquisition have been described as opportunities for expanding the BioLife product portfolio serving the cell and gene therapy market, as well as for cross-selling products between the companies’ established networks worldwide.
Sexton’s portfolio of cell and gene therapy bioproduction tools includes the Proprietary CellSeal® closed vials; nLiven PR™, T-Liven PR™ and Stemulate® human platelet lysate (HPL) media products; AF-500 automated filling device for high-throughput fill/finish of intermediate and final cell therapy products and the Signata CT-5™.
BioLife also expects the acquisition of Sexton to impact financial performance, including a revenue contribution from Sexton of ~$2 million, based on an anticipated closing date of the 1st September. BioLife’s total 2021 revenue is therefore expected to be in a range of $108–117 million. 2022 revenue from Sexton is reportedly expected to be ~$8 million.
As BioLife’s CFO, Roderick de Greef, outlined:
“We expect approximately two-thirds of Sexton’s revenue will be comprised of recurring HPL media and CellSeal consumables. The acquisition of Sexton should accelerate the attainment of our mid-term goals of $250 million in revenue and an adjusted EBITDA margin of 30%.”
Sean Werner, President of Sexton Biotechnologies and, upon closing, CTO – Cell Processing Platform at BioLife, concluded:
“This is a great day for the Sexton team and our shareholders. BioLife has been a key investor and critical supporter of our mission. Our corporate cultures are highly aligned, and we look forward to joining BioLife’s growing team and continuing to drive adoption of our cell and gene therapy bioproduction tools.”
Source: BioLife Solutions press release