Catalent bolsters Paragon through Novavax deal

By Vassia Barba contact

- Last updated on GMT

(Image: Getty/vchal)
(Image: Getty/vchal)

Related tags: Catalent, Paragon Bioservices, Novavax, Viral vector, acquisition

Aiming to boost the gene therapy development and manufacturing capabilities of Paragon, which Catalent acquired in April, the CDMO has agreed to acquire all of the gene therapy-related assets from Novavax, a late-stage vaccine developer.

Under the agreement, Paragon will take over two clinical development and manufacturing sites in Gaithersburg, US, while over 100 of Novavax’s employees will transfer to Paragon.

In addition, Paragon has agreed to provide process development and manufacturing services for specified Novavax programs and manufacture commercial quantities of the latter company’s vaccines.

With the cash infusion of $18m (€15.8m), Novavax has announced plans to further advance NanoFlu and ResVax vaccines against H3N2 and respiratory syncytial virus, respectively, through the next phases of clinical development and regulatory review.

Stanley Erck, CEO of Novavax, said in a statement that this alliance is a ‘true win-win’, while Pete Buzy, president of Paragon, said that the strategic collaboration will enable the company to “advance Novavax’ innovative recombinant vaccines platform and expand our ability to serve the burgeoning gene and cell therapy market.”

The transactions are expected to close in this month.

Catalent’s jump into gene therapies

Catalent acquired Paragon​ in a $1.2bn deal signed in April 2019, concurrently announcing plans for ‘substantial’ investments to ensure its growth, once the acquisition is complete.

Through this deal, Catalent entered the gene therapy contract services market, as the company announced its intentions to enhance its adeno-associated viral (AAV) vectors, lentivirus vectors, and plasmid development and manufacturing capabilities.

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