Agenus Inc. and Zydus Lifesciences Ltd. closed a $141 million strategic collaboration on January 15 2026, finalizing the sale of Agenus’s Emeryville and Berkeley biologics manufacturing facilities. The transaction creates Zylidac Bio LLC, a new U.S. subsidiary that will provide contract manufacturing services for Agenus’s lead immuno‑oncology candidates, botensilimab and balstilimab.
The deal’s financial structure includes $75 million in upfront cash for the facilities, a $16 million equity investment in Zydus that translates to roughly 2.1 million shares at $7.50 each, and up to $50 million in milestone payments tied to production orders. Zydus also secured a 5 % royalty on sales of BOT/BAL in India and Sri Lanka, giving it exclusive commercial rights in those markets.
For Agenus, the cash infusion relieves a critical liquidity constraint that had been highlighted in its Q1 2025 earnings, when the company reported a $26.4 million net loss against a $18.5 million cash balance. The partnership allows Agenus to divest non‑core manufacturing assets, reduce operating overhead, and focus resources on advancing BOT/BAL through late‑stage development and regulatory submission.
Zydus’s acquisition of U.S. manufacturing capacity marks a strategic expansion of its CDMO portfolio. The new subsidiary positions Zydus to serve U.S. biopharma clients while leveraging its existing presence in India and Sri Lanka, where it will commercialize BOT/BAL under the exclusive rights it secured in the agreement.
Analysts upgraded Agenus to a “Buy” rating following the deal, citing the substantial capital injection and secured manufacturing capacity as key drivers of the positive market reaction. CEO Garo Armen said the collaboration “strengthens our balance sheet and secures dedicated U.S. manufacturing capacity at a pivotal moment for Agenus.” Managing Director Sharvil Patel added that Zylidac Bio LLC will “offer CDMO services globally and support the evolving landscape of biological product manufacturing in the U.S.”
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