Maravai LifeSciences, Inc. (Nasdaq: MRVI), “a global provider of life science reagents,” acquired biotech company MyChem LLC for $240 million cash, in a deal that will advance Maravai’s offerings in therapeutics and vaccines.
According to the filing, MyChem is a “provider of proprietary, ultra-pure nucleotides to customers in the diagnostics, pharma, genomics and research markets.” Furthermore, MyChem’s products include modified nucleotides and other items used for mRNA synthesis. The filing notes that “MyChem’s portfolio complements Maravai’s nucleic acid production products and is expected to provide customers significant benefits through an integrated offering.” Additionally, MyChem will help to fast-track Maravai’s innovation capabilities by providing more resources for research and development.
“MyChem provides critical raw materials for our CleanCap AG and mRNA production and has been a reliable supply partner,” Brian Neel, Chief Operating Officer, Nucleic Acid Production, said in a press release. “This acquisition continues our path to build and integrate strategic inputs of the mRNA vaccine and therapeutic supply chain into our operations here in the U.S. and our push to have an end-to end offering for our customers.”
“We are pleased to join Maravai and the Trilink team given their outstanding reputation for quality, their industry leadership and our shared commitment to develop innovative life science tools,” Chanfeng Zhao, Chief Executive Officer and co-founder of MyChem, said in a statement. “This business combination will also allow us to pursue cross-selling opportunities to existing customers, expand sales and marketing to new customers and markets, initiate GMP manufacturing of nucleotides and pursue additional opportunities with pharmaceutical customers in their mRNA programs for vaccine and therapeutic applications.”
According to the deal terms, there is also the potential for more cash consideration based on achieving certain conditions after closing the deal. MyChem will become part of the TriLink and the Nucleic Acid Production business segment; the MyChem management team will report to Brian Neel, COO of Nucleic Acid Production. The deal closed on January 28, 2022.
Morrison & Foerster LLP served as legal advisor and BroadOak Capital Partners, LLC served as financial advisor to MyChem. Kirkland & Ellis LLP served as legal advisor and Jefferies LLC served as financial advisor to Maravai Life Sciences.
The acquisition announcement comes after the company announced its debt repricing. Specifically, Maravai secured lower interest rates on its current debt to provide approximately $6.8 million in savings per year on interest. Meanwhile the company went public in 2020. In March 2020, Maravai acquired MockV Solutions, which developed “non-infections mock virus particles,” for an undisclosed amount. In January 2018, it acquired Glenn Research, which provides reagents for DNA and RNA synthesis, for an undisclosed amount. Lastly, in 2016 it completed its acquisitions of Solulink’s commercial assets as well as TriLink Biotechnologies and Cygnus Technologies, which provide highly modified nucleic acids and specialized analytical products for the pharmaceutical and biotech industries; these acquisitions were for an undisclosed amount.
Prior to the announcement, Maravai’s stock was valued at $25.25 on January 27. On the day of the announcement, January 28, it was valued at $27.30. About a week later, on February 7, it was valued at $29.66.