Ofichem has signed an agreement to acquire Kinentia Biosciences, a Drug Substance CDMO based in Rensselaer, New York. Completion of the transaction remains subject to CFIUS approval and other customary closing conditions.

The acquisition is the next step in the development of Ofichem’s Drug Substance business and will establish an operational presence for the group in the United States. Kinentia’s position within the US biotechnology market and its focus on early-stage development complement Ofichem’s existing process development, GMP manufacturing and commercial supply capabilities in Europe.

Founded in 2007 and based in New York, Kinentia supports pharmaceutical and biotechnology companies with early-stage development, preclinical programmes and clinical development activities. Following completion, Kinentia customers will have access to the wider Ofichem Drug Substance network as their programmes progress, including process scale-up, regulatory support and GMP manufacturing at Ofichem’s FDA-inspected Ter Apel facility in the Netherlands.

The acquisition will allow Ofichem to work more closely with its existing US customers and Kinentia’s biotechnology customer base, while providing a basis for developing regional manufacturing options across the United States and Europe. Customers will have greater flexibility in where development and manufacturing activities take place, an increasingly relevant consideration as pharmaceutical companies review supply chain resilience, onshoring and regional manufacturing strategies.

The US presence also creates a platform for Ofichem’s longer-term ambitions in controlled substances. Subject to relevant licences and approvals, Ofichem intends to explore opportunities to establish US capabilities for controlled substances, building on the group's existing expertise in highly regulated products.

Ofichem’s scientific offering will also broaden, adding expertise in polysaccharides, small peptides and complex new chemical entities. These capabilities complement Ofichem's established work in small molecules, highly potent compounds requiring OEB 3-5 controls, oligonucleotides, and targeted protein degradation technologies including proteolysis-targeting chimeras (PROTACs). 

Following completion, the Drug Substance business will operate across New York (US), Ter Apel (NL) and Uppsala (SE). Each site brings different areas of expertise allowing customers to access scientific and manufacturing support according to the needs and stage of their programme, from early scientific and analytical development through process development, scale-up and GMP manufacturing.

The wider Ofichem Group also includes its Sourcing & Distribution business unit, operating from Ter Apel, Hangzhou (CN) and Hamburg (DE), and its Drug Product business units, with formulation and manufacturing operations in Nijmegen and Leiden (NL). Together, these capabilities enable Ofichem to support customers a.o. across a broader part of their CMC programme.

Dr. Weite Oldenziel, CEO of the Ofichem Group, said: “The acquisition of Kinentia represents an important milestone in Ofichem’s continued development. It strengthens our presence in the United States and complements our established European development and manufacturing capabilities. We are building one organisation with one knowledge base, able to support customers from the first development decisions through to commercial supply.”

Alessia Cogotti, Managing Director of Ofichem's Drug Substance Business Unit, said:

“Kinentia brings highly complementary capabilities and experience to our Drug Substance business and strengthens our position in the United States. Its expertise in early-stage development, complex chemistry and complementary modalities broadens our scientific offering, while Ofichem’s existing GMP and commercial manufacturing capabilities allow us to support programmes as they progress towards commercialisation.

Keeping scientific and process knowledge within one accountable organisation provides greater continuity as programmes develop, reducing the risks associated with handovers between independent providers and creating a more connected path from early development through to commercial manufacturing.”

Dr Dave Fairfax, President and CEO of Kinentia, said: “For our team and our customers, the fit with Ofichem is strong. We share a commitment to quality, scientific expertise and long-term customer relationships. Joining the group gives Kinentia access to a wider scientific network and a route into commercial manufacturing, while preserving the specialist approach that has shaped our business since 2007.”

 The transaction builds on Ofichem’s recent expansion of its European development and manufacturing network and its strategy to strengthen the group through targeted investments in specialist capabilities and key pharmaceutical markets.