AGC Asahi Glass, a manufacturer of glass, chemicals and high-tech materials, has entered into an agreement to acquire CMC Biologics, a biologics active pharmaceutical ingredient (API) manufacturer, for approximately 60 billion Japanese yen. The agreement, subject to customary approvals, is expected to be completed in January 2017.

CMC is CDMO offering biologic API-manufacturing service with mammalian and microbial hosts. The company provides cell line construction, process development, scale-up and manufacturing of APIs used in drug development and in commercial products. CMC operates on a global scale with production facilities in Denmark (Copenhagen) and the U.S. (Seattle and Berkeley) and has approximately 530 employees.

David Kauffmann, chairman of CMC Biologics, said, “I am excited by CMC Biologics becoming part of AGC, a world-class company committed to excellence and high customer satisfaction. AGC’s dedication to best technology solutions and long-time partnership with clients align so well with CMC Biologics’ quest to be the preferred biologics CDMO service partner for the world’s top pharmaceutical and biotech companies.”

“We are honored to become part of AGC, a successful global company with a long-term business strategy and resources to be the ideal owner of CMC Biologics. The CMC management team look forward to becoming one team with AGC, to bring and combine broad, as well as focused, innovative solutions to our clients,” said Gustavo Mahler, president and chief executive officer of CMC Biologics. “With this transaction, I am confident that our clients will receive even further benefits from our combined high level of expertise, years of experience, and global offerings.”

The acquisition is part of AGC’s strategy to expand its biologics CDMO operations, complementing its current operations in Japan and Europe. The business integration with CMC will enable AGC to offer global biologics CDMO API services, with a host of technologies and manufacturing solutions by both mammalian and microbial operations.