Hitachi Chemical Advanced Therapeutic Solutions has purchased a Munich-based gene and cell therapy manufacturing firm Acepth Biopharma, by paying a sum of nearly $86 million. The transaction is likely to complete by April this year.
Currently, the Hitachi chemical subsidiary has facilities in the US and Japan. Hitachi has acquired the firm to extend its foothold in Europe, which the company thinks is the world’s second most lucrative market for cell and gene therapy, after the US. As per the acquisition norms, Hitachi would run Acepth’s two manufacturing plants in Munich.
The buyout of Acepth by Hitachi Chemicals hasn’t surprised anybody for the company has been aggressively taking steps to gain a pole position in the global gene and cell therapy market. Previously, Hitachi purchased 80% remaining share in PCT for $75 million in 2017. Now, with this acquisition Hitachi has purchased the complete ownership of the deal development and manufacturing organization.
Besides these developments, Hitachi Chemicals has been working towards growing its manufacturing facilities in Japan and the US, as it runs manufacturing plants in Allendale, New Jersey, Mountain View, California, and Yokohama, Japan. During the second quarter of this year, the company is planning to set up another manufacturing facility in Allendale.
Global government and regulatory authorities continue to note of the developments and progression in the gene and cell therapy market, as they look forward to roll out rules and guidelines to maintain pace with the sector. For example, America’s Food and Drug Administration has decided to design and release a set of fresh guidelines for manufacturing gene and cell therapy drugs. According to industry sources, manufacturing companies have been facing challenges in terms of developing safe, affordable, and reliable products.
Robert A. Preti, CEO and President of Hitachi Chemical Advanced Therapeutics Solutions said that Hitachi Chemical’s purchase of Apceth Biopharma will strengthen their presence in the world’s second largest cell and gene therapy market.