Japan’s Ajinomoto said on Monday it agreed to acquire U.S.-based genetic medicines maker Forge Biologics Holdings for 82.8 billion yen ($546 million).
The transaction is expected to be completed in December 2023 pending regulatory approvals, Ajinomoto said in a release.
As part of its 2030 Roadmap, announced in February this year, the group identified four strategic growth areas including Healthcare, leveraging the strengths of its proprietary “AminoScience” platform. Within the Healthcare area, in addition to the steady growth of its existing amino acid and small molecule drugs CDMO businesses, Ajinomoto Co. expects to deliver accelerated growth through the expansion of its oligonucleotide drugs, biopharmaceutical CDMO, regenerative medicine and antibody culture media, medical food businesses and more.
It said from a medium- to long-term perspective, Ajinomoto identified gene therapy CDMO as one of its priority next-generation strategic businesses, functioning as a stepping stone to growth in advanced modalities(3)
Gene therapy is a medical technology that treats genetic abnormalities causing diseases by modifying or adding genes in the body, mainly targeting hereditary diseases that are difficult to treat with existing therapies. Among the projects currently in the global gene therapy pipeline, the vast majority continue to utilize adeno-associated virus (“AAV”) (4)due to its increasingly well-established safety profile – over 100 clinical trials have been conducted (mainly in the United States), and seven new drugs have now been approved.
The acquisition is scheduled to be completed in December 2023, subject to general preconditions stipulated in
the merger agreement.
