The more than $600 million acquisition of Forge Biologics Inc. is complete – but the deal value can still change.
Ajinomoto Company Inc., a Tokyo-based global manufacturer, completed acquiring the gene therapy startup's equities as of Dec. 21, according to a release. The deal, first announced in November, was accomplished through a California-based Ajinomoto subsidiary.
The $10 billion company makes mainly nutritional additives and foods, but sees Grove City-based Forge as a launchpad for expanding its healthcare arm into advanced medicine. Ajinomoto plans to continue expanding the biotech manufacturing facility in Central Ohio.
Forge shareholders received $545 million at the closing after paying off debt, down from a November projection of $554 million, according to news releases. The total all-cash deal had been projected at $620 million in November including the debt payment.
"As price adjustments will be made after the acquisition of equities, the acquisition value is not fixed at present," said a footnote in the latest release.
The deal comes amid a downturn for VC investing as well as IPOs and other exits. Forge's revenue has grown consistently and it was on a path to profitability, executives have said.
Forge raised $250 million in VC, but the relative stakes of investors and founders aren't disclosed.
The startup has grown to more than 300 employees in its nearly four years in business, and is aiming to top 400.
Healthcare is one of four strategic growth areas Ajinomoto announced in February for its "2030 Roadmap," according to a release. Currently seasonings, soup mixes and other nutrition products make up 70% of sales.
Ajinomoto was co-founded more than a century ago by the scientist who invented MSG, which is a salt of glutamate – one of the amino acids that are the building blocks of all proteins.
Forge's gene therapy contract development and manufacturing, as well as the proprietary therapies it's developing, fit into Ajinomoto's "AminoScience" tech platform.
"Through this acquisition, the group aims to open new treatment paths for people suffering from rare diseases and achieve early realization of the roadmap by building a strong business infrastructure in cutting-edge medical fields," the release said.
"Envisioning progress up to 2050, by entering next-generation business areas based on the technologies and customers cultivated up to now, it will promote transition to a high value-added business model leading to accelerated growth and higher profitability in the healthcare field."
Forge, which installed the largest bioreactors on the market in its facility, has the manufacturing capacity for commercial production, should one of its 40 clients win FDA approval. Ajinomoto brings worldwide commercialization infrastructure such as back office, sales, marketing and distribution.
Earlier this month, research by Forge scientists was published in the journal Human Gene Therapy, a discovery that could mean developing safer viral carriers for gene therapies while producing them in larger volumes, according to a release.
