Gamma Biosciences Announces Sale of Mirus Bio to Merck KGaA, Darmstadt, Germany, for $600 Million
Gamma Biosciences announced the sale of its operating company, Mirus Bio, to Merck KGaA, Darmstadt, Germany, for $600 million in cash. The sale is expected to be completed in Q3 2024, pending regulatory approvals. Mirus Bio, acquired by Gamma in 2021, specializes in transfection solutions for genetic material delivery into cells, with applications in cell and gene therapy. Gamma's CEO, Matt Gunnison, praised Mirus' progress and expressed confidence in Merck's ability to continue this trajectory. Dale Gordon, CEO of Mirus Bio, highlighted the strengthening position in the market and future expansion under Merck. KKR representatives also emphasized their strategic growth in the life sciences sector.
- Gamma Biosciences will receive $600 million in cash from the sale of Mirus Bio.
- Mirus Bio has a strong portfolio of innovative transfection solutions and scalable GMP delivery platforms.
- The transaction reflects KKR's commitment to innovation in the life sciences sector.
- Completion of the sale is expected to strengthen Mirus Bio's position in the cell and gene therapy market.
- Gamma's strategic support led to significant product launches like VirusGEN® GMP and RevIT™ AAV Enhancer.
- The transaction is subject to US regulatory approvals, which could delay the completion.
- Potential risks associated with integration under Merck KGaA's management structure.
- Gamma Biosciences will lose direct control over Mirus Bio post-sale.
Insights
The acquisition of Mirus Bio by Merck KGaA for
From a financial perspective, this acquisition is likely to be beneficial for both companies. For Gamma Biosciences, the deal represents a profitable exit from their investment in Mirus Bio, which they acquired in 2021. This sale could result in a significant return on investment, given that they have supported Mirus Bio's growth and scaling efforts. For Merck KGaA, the acquisition cost is justified by the potential revenue growth from integrating Mirus Bio's products into their existing offerings, especially in the high-demand cell and gene therapy segment.
Investors should note that the completion of this transaction is subject to US regulatory approvals and other customary conditions, which introduces some uncertainty. However, assuming the deal goes through as planned, it could lead to enhanced shareholder value for Merck KGaA due to the strategic fit and growth potential.
The cell and gene therapy market is one of the fastest-growing sectors in the biopharmaceutical industry. Mirus Bio's expertise in transfection solutions positions it well within this market, providing essential tools for the delivery of genetic material into cells. This acquisition by Merck KGaA underscores the importance of these technologies in advancing therapeutic applications.
Merck KGaA's decision to acquire Mirus Bio is strategic, aiming to bolster its product portfolio with advanced transfection technologies that cater to both research and large-scale therapeutic virus production. The inclusion of Mirus Bio's GMP delivery platforms and enhancers aligns with the increasing demand for efficient and scalable solutions in cell and gene therapy manufacturing. This move can enhance Merck KGaA's competitive edge in providing comprehensive solutions for therapy developers, potentially accelerating the development and commercialization of new treatments.
For retail investors, this acquisition highlights Merck KGaA's commitment to innovation and strategic growth in high-potential markets. It reflects a broader industry trend where leading companies are investing heavily in advanced therapeutic technologies to drive future growth. Understanding this context can provide insights into potential long-term benefits for shareholders, as Merck KGaA aims to capture a larger share of the burgeoning cell and gene therapy market.
MENLO PARK, Calif. and MADISON, Wis., May 23, 2024 /PRNewswire/ -- Gamma Biosciences, a life sciences platform established by KKR to address the advanced therapy bioprocessing market, today announced that it has entered into an agreement with Merck KGaA, Darmstadt,
Mirus Bio is a leading provider of innovative transfection solutions used for the delivery of genetic material into cells. The company offers a comprehensive portfolio of RUO and GMP reagents and enhancers based on proprietary, multi-component technology. Its products deliver high-performance and cost-effective transfection for a variety of applications, from research through virus manufacturing at scale to address rapidly growing cell and gene therapy applications in AAV & LV.
Gamma acquired a controlling stake in Mirus Bio in 2021 and has worked closely with the company to support its growth and scale-up, including the launch of flagship products VirusGEN® GMP and RevIT™ AAV Enhancer for large-scale therapeutic adeno-associated virus and lentivirus production.
"Over the last several years, we have had the pleasure of supporting Dale and the team at Mirus as they have worked to make these best-in-class transfection products available to cell and gene therapy developers while maintaining the company's long-standing commitment to the research community" said Matt Gunnison, CEO of Gamma Biosciences. "We are very proud of the progress that Mirus has made and are delighted that it will now become part of Merck KGaA, Darmstadt,
Dale Gordon, Chief Executive Officer of Mirus Bio, added "With the support of Gamma Biosciences and KKR, we have commercialized our scalable GMP delivery platforms for clinical use and significantly strengthened our position in the cell and gene therapy market. I look forward to this new era with Merck KGaA, Darmstadt,
"Gamma's investment in Mirus Bio reflects KKR's commitment to driving innovation in the life sciences sector," said Kugan Sathiyanandarajah, Partner at KKR and Head of
The transaction is expected to be completed in the third quarter of 2024, subject to US regulatory approvals, as well as other customary closing conditions. Jefferies LLC acted as financial advisor to Gamma and Sidley Austin LLP acted as legal advisors to Gamma.
About Gamma Biosciences
Gamma Biosciences is a leading life sciences platform providing products and services to support the development and manufacturing of advanced biologic therapies. Our operating companies are committed to advancing the science and art of bioprocessing by delivering market-ready innovation and expertise that helps our customers.
About Mirus Bio
Mirus Bio is a leading provider of transfection products for the biopharmaceutical and research industries, offering best-in-class reagents for gene therapy, recombinant protein, and stem cell applications. A pioneer in nucleic acid delivery, the company has been enabling scientific research and innovation for more than two decades. In 2021, Mirus introduced VirusGEN® GMP Transfection Reagent and Enhancers to address the commercial biopharmaceutical and cell and gene therapy markets with support for virus manufacturing, gene editing, and biotherapeutic protein production.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group's website at www.globalatlantic.com.
Media Contacts
Mirus Bio
Nat Connors
Mobil: +608 867-6465
E-Mail: nat.connors@mirusbio.com
KKR
FGS Global
Alastair Elwen
+44 20 7251 3801
KKR-Lon@FGSGlobal.com
KKR Germany
Thea Bichmann
M: +49 172 13 99 761
kkr_germany@fgsglobal.com
View original content:https://www.prnewswire.com/news-releases/gamma-biosciences-announces-sale-of-mirus-bio-to-merck-kgaa-darmstadt-germany-for-600-million-302154137.html
SOURCE Gamma Biosciences
FAQ
What is the value of the sale of Mirus Bio to Merck KGaA?
When is the sale of Mirus Bio to Merck KGaA expected to be completed?
What kind of solutions does Mirus Bio provide?
How did Gamma Biosciences support Mirus Bio's growth?
Who acted as financial advisor to Gamma Biosciences in the sale of Mirus Bio?
