Catalent said on Monday that will would certainly buy privately held gene therapy-focused Paragon Bioservices in an all-cash deal for $1.2 billion, helping the drug developer expand its capabilities to make specialized in addition to costly treatments.
Paragon, backed by private-equity firms Camden Partners in addition to NewSpring Capital, focuses on developing in addition to manufacturing products such as complex biopharmaceuticals for its clients.
Catalent also develops drugs for different companies in addition to does business in Asia, Europe, in addition to North in addition to South America.
The deal follows different multi-billion dollar deals as drug companies have been aggressively moving into the potentially $40 billion addressable market for gene therapy, where treatments for rare, genetic diseases command some of the highest prices.
In Februray, Swiss drugmaker Roche agreed to buy U.S.-based gene therapy specialist Spark Therapeutics for $4.3 billion, while Novartis purchased U.S.-based Avexis for $8.7 billion last year.
Catalent expects the transaction to add to its adjusted earnings inside second full fiscal year after closing.
The company said that will will fund the deal with proceeds by a $650 million incremental term loan in addition to issuance of $650 million of a fresh series of convertible preferred stock.
After the deal closes, Paragon will be led by its Chief Executive Officer Pete Buzy.
The Wall Street Journal reported on Sunday that will Catalent had agreed to buy Paragon.