Lonza to Acquire Synaffix and Strengthen Antibody-Drug Conjugates Offering

Lonza Group AG / Key word(s): Acquisition/Mergers & Acquisitions
Lonza to Acquire Synaffix and Strengthen Antibody-Drug Conjugates Offering
01.06.2023 / 07:00 CET/CEST

• Lonza to acquire Synaffix B.V., an innovative biotech company focused on antibody-drug conjugates (ADCs)
   
• Acquisition will further strengthen Lonza’s bioconjugates offering through the integration of the industry-leading proprietary Synaffix technology platform and R&D capabilities, including payload and site-specific linker technology
   
• Lonza and Synaffix will continue to expand their Center of Excellence for bioconjugate technology development, with a focus on out-licensing bioconjugates technologies for cytotoxic ADCs, targeted gene therapy, immune cell engagers applications and beyond
   
• The acquisition comprises an initial financial consideration of €100 million in cash and up to €60 million in additional performance-based consideration

Basel, Switzerland, and Amsterdam, Netherlands, 1 June 2023 – Lonza, a global manufacturing partner to the pharmaceutical, biotech and nutraceutical markets, today announced it has acquired Synaffix B.V. (Synaffix), a biotechnology company focused on commercializing its clinical-stage technology platform for the development of ADCs. Synaffix revenues and margins will be recognized within the Lonza business from the date of acquisition.

While ADCs offer widespread and targeted treatment potential against cancer, they present a range of complex development and manufacturing challenges. Supported by a team of scientific experts, the Synaffix technology platform, which includes payload and site-specific linker technologies, will enhance and extend Lonza’s integrated ADC services, including its early-phase offering. The award-winning Synaffix ADC technology platform comprises proprietary GlycoConnect™, HydraSpace™ and toxSYN™ technologies that can considerably enhance the efficacy and tolerability of ADCs.

Combining Lonza’s development and manufacturing capabilities with the Synaffix ADC technology platform will provide customers and licensees with a comprehensive service to rapidly discover, develop, scale up and commercialize novel and differentiated ADCs. These enhanced capabilities will streamline the path to clinic and commercialization.

Ulrich Osswald, Vice President, Licensing, Lonza, commented: “The Synaffix ADC technology is the gold standard, helping clinical-stage developers to design potentially curative therapies in areas of high unmet medical need. The acquisition of Synaffix underlines the strategic position of bioconjugates within Lonza’s portfolio, expands our offering in this fast-growing market and enhances our value proposition for clinical customers. With Synaffix, our combined industry-leading knowledge and capabilities have the capacity to support both clinical and commercial needs.”

Peter van de Sande, CEO, Synaffix, added: “On our mission to bring Synaffix’s ADC technologies to patients, we are excited to become part of Lonza and thus, through strong and immediate synergies, ensure a robust technology and manufacturing platform for our licensees as they progress into the late stage clinical and commercial development phase. We can now also leverage the potential offered by Lonza to fast-track technology innovations in bioconjugates beyond cytotoxic ADCs. We look forward to working closely with our colleagues at Lonza for the continued enablement of promising potential medicines for patients in need.”

As a Lonza company, Synaffix will continue to operate under the Synaffix name and further expand its operations in Oss (NL) to cater for further innovation and growth.

The acquisition reflects Lonza’s strategy to differentiate through technology and innovation. From its leading bioconjugation offering, to the commercial manufacture of cell and gene therapies and support in producing live biotherapeutics, Lonza’s manufacturing technologies help customers deliver innovative new therapies to patients.

Bird & Bird acted as legal advisor to Lonza. William Blair acted as financial advisor and Goodwin and NautaDutilh acted as legal advisors to Synaffix.

Notes to Editors
An ADC is a revolutionary type of targeted cancer therapy designed to deliver a potent drug directly to cancer cells while sparing healthy cells. The structure of an ADC consists of a monoclonal antibody (mAb) and a cytotoxic drug that are assembled using a linker technology. The way these components are assembled plays a critical role in directing the release of the drug only inside the cancer cell in order to maximize therapeutic effect while maintaining drug safety.

The ADC market is set to exceed $22 billion by 2030.^[1]

To learn more about Lonza’s ADC offering, please visit: https://www.lonza.com/biologics/bioconjugates

[1] Grand View Research (May 2023)

About Lonza
Lonza is a preferred global partner to the pharmaceutical, biotech and nutrition markets. We work to enable a healthier world by supporting our customers to deliver new and innovative medicines that help treat a wide range of diseases. We achieve this by combining technological insight with world-class manufacturing, scientific expertise and process excellence. Our business is structured to meet our customers' complex needs across four divisions: Biologics, Small Molecules, Cell & Gene and Capsules & Health Ingredients. Our unparalleled breadth of offerings across divisions enables our customers to commercialize their discoveries and innovations in the healthcare industry.

Founded in 1897 in the Swiss Alps, today, Lonza operates across five continents. With approximately 17,500 full-time employees, we comprise high-performing teams and individual talent who make a meaningful difference to our own business, as well as to the communities in which we operate. The company generated sales of CHF 6.2 billion with a CORE EBITDA of CHF 2.0 billion in Full-Year 2022. Find out more at www.lonza.com

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About Synaffix
Synaffix B.V. is a biotechnology company that enables ADC product candidates using its clinical-stage, site-specific ADC technology platform based on GlycoConnect™, HydraSpace™ and toxSYN™, that together enable any company with an antibody to develop proprietary best-in-class ADC products under a single license from Synaffix.

The Synaffix platform enables a rapid timeline to clinic due to the established supply chain of technology components. Granted patents covering Synaffix’ technology provide end-to-end protection of the manufacturing technology as well as the resulting products through at least 2039. The business model of Synaffix is target-specific technology out-licensing, as exemplified through its existing deals with ADC Therapeutics, Mersana Therapeutics, Shanghai Miracogen, Innovent Biologics, ProfoundBio, Kyowa Kirin, Genmab, Macrogenics, Emergence Therapeutics, Amgen, Hummingbird Biosciences and Chong Kun Dang Pharma.

Synaffix is backed by a top tier, life science-focused investor syndicate that includes Aravis, BioGeneration Ventures, BOM Brabant Ventures and M Ventures. 

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About The Synaffix ADC Platform Technology
Synaffix’ proprietary ADC technology platform consists of GlycoConnect™, HydraSpace™ and toxSYN™ technologies.  These technologies are aimed at enabling best-in-class ADCs from any antibody, with significantly enhanced efficacy and tolerability. 

GlycoConnect™ is a clinical-stage conjugation technology that exploits the native antibody glycan for site-specific and stable payload attachment and is tunable to DAR1, DAR2 or DAR4 formats. HydraSpace™ is a clinical-stage compact and highly polar spacer technology that is designed to further enhance therapeutic index, particularly with hydrophobic payloads. toxSYN™ is a linker-payload platform that spans key, validated MOAs for ADC product development. This includes potent topoisomerase 1 inhibitor (SYNtecan E™), DNA damaging agents (SYNeamicin D^TM and SYNeamicin G^TM), ⍺-Microtubule (SYNtansine^TM) and β-Microtubule (SYNstatin E^TM and SYNstatin F^TM) Inhibitors as well as several unlaunched proprietary linker-payloads that were generated through the ongoing innovative efforts of the Synaffix R&D team.

The combination of these three technologies provides developers with a “one stop” and easy-to-use ADC technology platform, allowing any antibody developer to develop its own proprietary ADC and any ADC developer to expand its pipeline further and increase its competitive position.

Lonza Contact Details

Victoria Morgan
Head of External Communications
Lonza Group Ltd
Tel +41 61 316 2283
victoria.morgan@lonza.com

Lyle Wheeler
Investor Relations
Lonza Group Ltd
Tel +41 79 154 9522
lyle.wheeler@lonza.com

Synaffix Contact Details

Synaffix B.V.
Anthony DeBoer
Vice President, Business Development
bd@synaffix.com

Optimum Strategic Communications
Hollie Vile, Vici Rabbetts, Eleanor Cooper
+ 44 (0) 20 3922 0891
Synaffix@optimumcomms.com

Additional Information and Disclaimer
Lonza Group Ltd has its headquarters in Basel, Switzerland, and is listed on the SIX Swiss Exchange. It has a secondary listing on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Lonza Group Ltd is not subject to the SGX-ST’s continuing listing requirements but remains subject to Rules 217 and 751 of the SGX-ST Listing Manual.

Certain matters discussed in this news release may constitute forward-looking statements. These statements are based on current expectations and estimates of Lonza Group Ltd, although Lonza Group Ltd can give no assurance that these expectations and estimates will be achieved. Investors are cautioned that all forward-looking statements involve risks and uncertainty and are qualified in their entirety. The actual results may differ materially in the future from the forward-looking statements included in this news release due to various factors. Furthermore, except as otherwise required by law, Lonza Group Ltd disclaims any intention or obligation to update the statements contained in this news release.

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