Fujifilm Acquires Kalon Biotherapeutics

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Fujifilm Diosynth Biotechnologies announced the completion of the acquisition of Kalon Biotherapeutics, a company that specializes in advanced biologics development manufacturing.


Fujifilm Diosynth Biotechnologies U.S.A (FDBU) announced on Dec. 18, 2014 that it completed the acquisition of Kalon Biotherapeutics, a biopharmaceutical CMO formed by The Texas A&M University System in 2011. The agreement came to the publics’ attention in October 2014 when Fujifilm announced it would enter the vaccine CMO market with the pending acquisition. 

“This acquisition further reinforces Fujifilm’s global leadership and commitment to the biopharmaceutical industry. Our scientific and manufacturing leadership will be strengthened by adding Kalon’s viral and cell culture vaccine expertise and capabilities to our existing competencies in microbial, mammalian, and insect cell process development, analytics, and commercial production,” said Steve Bagshaw, CEO, FUJIFILM Diosynth Biotechnologies, in a press release.

As part of the agreement, FDBU acquired 49% of the total membership interests in Kalon and will be able to appoint the majority of Kalon’s board members. Also per the agreement, FDBU will have the opportunity to acquire 100% of the interest share pending the achievement of milestones. In addition to the interest share agreement, FDBU will support Kalon operations at the National Center for Therapeutics Manufacturing, at Texas A&M, and a pandemic vaccine manufacturing facility that is under construction. The acquisition will add viruses and viral/vaccine-based products to Fujifilm’s pipeline.


The acquisition also pulls Texas A&M, and the state of Texas as a whole, further to the forefront of biotechnology. Texas’ biotechnology marketplace has an estimated annual economic impact of $75 billion. In 2013, one out of every 15 US biotechnology establishments was located in Texas. According to TheTexas Biotechnology Industry report-released in 2014 by the state of Texas-Texas is “home to over 3,600 biotechnology manufacturing and R&D firms,” with 92,022 biotech workers employed in Texas. The report also lists dozens of companies currently active in Texas, including Baxter, Thermo Fisher, Sigma-Aldrich, GE Healthcare, DPT, Johnson & Johnson, and soon, FDBU. 

“Today’s signing represents an important next step and an exciting new chapter for the State of Texas, which is fast becoming a global leader in biotechnology and pharmaceutical manufacturing. The Texas A&M Center for Innovation in Advanced Development and Manufacturing is at the forefront of an exciting new method to produce life-saving treatments and vaccines, and I’m proud of the role the state has played in helping shape Texas into America’s ‘Third Coast’ in biotechnology,” said Governor Rick Perry, in a press release.