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Biopharma Services Industry - 2024 Year in Review
Download PDFIn 2024, global M&A within the biopharma services sector returned to growth, surpassing 2023 in both deal count (272 deals in 2024 vs. 267 in 2023) and value ($24.2 billion in 2024 compared to $20.5 billion in 2023).
In Sep-2024, Agilent Technologies acquired BioVectra, a biotechnology and pharmaceutical CDMO operating through two sites in Canada. Agilent acquired BioVectra for a total consideration of $925.0 million, valuing the business at 8.2x revenue. The acquisition will expand Agilent’s portfolio of CDMO services as it relates to sterile fill-finish, pDNA & mRNA capabilities, and lipid nanoparticle (LNP) formulation. The transaction also provides Agilent with capabilities in growing modalities such as ADCs, HPAPIs, GLP-1s and gene editing.
In Oct-24, Lonza acquired Genentech’s large-scale biologics site in Vacaville, CA for a total consideration of $1.2 billion. One of the largest biologics manufacturing facilities globally, the site has a total bioreactor capacity of around 330,000 liters. The acquisition strengthens Lonza's US Biologics footprint and complements Lonza’s investments in large-scale bioconjugation and drug product manufacturing in Switzerland, bolstering its ability to meet demand for comprehensive, large-scale production of complex biologics on a global scale.
In Nov-24, Ampersand Capital and GHO Capital announced the acquisition of Avid Bioservices, a dedicated CDMO focused on the development and cGMP manufacturing of biologics, for a total consideration of $1.1 billion, valuing the business at 6.3x revenue. The transaction is expected to close in the first quarter of 2025.
In Dec-24, Novo Holdings closed its acquisition of Catalent (previously announced in Feb-24), a global CDMO operating through a network 50+ sites, for a total consideration of $16.5 billion, valuing the business at 4.0x revenue and 42.5x EBITDA. Notably, the purchase price was a 47.5% premium to the 60-day average share price. The strategic rationale for the acquisition relates to Novo’s manufacturing capacity for its GLP-1 based diabetes and obesity treatments.
Data as of Dec 31, 2024
1EBITDA multiples greater than 30.0x are considered as “NM” and exclude clinical trial software and other health IT-focused transactions
2Includes add-on deals
Sources: Press releases, Capital IQ, MergerMarket, and PitchBook
Biopharma Services Industry - 2024 Year in Review
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