Hitachi Chemical Acquires German CDMO Apceth Biopharma for $85 Million to Expand European Regenerative Medicine Footprint

VCBeat (WeChat Official Account: vcbeat) has learned that Hitachi Chemical Co., Ltd. (“Hitachi Chemical,” Tokyo Stock Exchange stock code: 4217) recently announced the acquisition of the German biopharmaceutical company Apceth Biopharma for $85 million. The acquisition is expected to be completed in April 2019.

Hitachi Chemical, headquartered in Tokyo, Japan, offers a range of innovative products in the global market, such as electronic materials, automotive components, and energy storage devices and systems. The company’s fundamental policy in the life sciences sector is to cultivate foundational businesses for the future. Hitachi Chemical has already established a foundational business in diagnostic medicine and launched operations in regenerative medicine.

Hitachi Chemical has remained committed to expanding its regenerative medicine business in the United States and Japan. In May 2017, Hitachi Chemical acquired PCT, a U.S.-headquartered contract manufacturer of regenerative medicine products with 20 years of experience in manufacturing such products. Furthermore, in April 2018, Hitachi Chemical began operating a new facility in Yokohama, Kanagawa Prefecture, Japan, to provide contract development and manufacturing services for the development of regenerative medicine products.

By acquiring Apceth Biopharma, Hitachi Chemical will expand the reach of its regenerative medicine business in Europe, the second-largest regenerative medicine market after the United States.

Apceth Biopharma, founded in 2007 as a pioneer in cell and gene therapy, has evolved into Europe’s leading contract development and manufacturing organization (CDMO) for advanced therapy medicinal products (ATMPs). The company operates state-of-the-art facilities in Munich, Germany, which are fully compliant with all current EU ATMP regulations, Biosafety Level 2 (BSL-2) standards, and International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (ICH) guidelines.

Apceth Biopharma possesses comprehensive expertise in Good Manufacturing Practice (GMP) manufacturing, including research on natural or genetically modified autologous and allogeneic cell types. The company has long been engaged in the research of various cell products, such as mesenchymal stem cells, hematopoietic stem cells, lymphocytes, monocytes, dendritic cells, and umbilical cord blood-derived stem cells, demonstrating significant potential for the development of CAR-T and induced pluripotent stem cell (iPSC) technologies. Through its regenerative medicine production facility in Germany, Apceth Biopharma is expanding its regenerative medicine business into Europe and the United States.

This acquisition will enable Hitachi Chemical to establish a production framework for regenerative medicine products in the United States, Japan, and Europe. By leveraging Apceth Biopharma’s manufacturing facilities and extensive sales network, Hitachi Chemical will further expand its regenerative medicine business. Additionally, Hitachi Chemical will strive to develop a system that ensures the timely production and transportation of products with consistent quality, allowing pharmaceutical manufacturers in each region to rapidly commercialize their products globally.

Dr. Christine Guenther, CEO of Apceth Biopharma, stated, “We are delighted to become part of Hitachi Chemical. Leveraging Hitachi Chemical’s comprehensive strengths will enable us to deliver precision cell and gene therapies to customers in North America, Asia, and Europe, thereby empowering our clients to provide patients worldwide with much-needed innovative and high-quality cell and gene therapies.”

(Compiled by Liu Ting)