Agilent to buy contract drug manufacturer Biovectra for $925 million

(Reuters) - Agilent Technologies said on Monday it will acquire contract drug manufacturer Biovectra for $925 million to expand its portfolio of services offered to biotech companies and medical researchers.

Canada-based Biovectra offers fill-and-finish services for drug manufacturers. It also operates a business that makes active ingredients for complex drugs and has expertise in fast-growing segments such as the GLP-1 weight loss drugs, Agilent said.

Agilent has been struggling with soft demand for medical tools and equipment used in clinical studies as its biotech clients face a funding crunch.

The company said it will fund the transaction using a mix of cash on hand and debt financing, adding that Biovectra will become a part of its diagnostics and genomics unit.

The deal will have a dilutive impact of 5 cents on Agilent's profit, a year after the close of the Biovectra transaction.

Biovectra, previously a unit of Mallinckrodt, was acquired by private equity firm H.I.G. Capital in 2019 for $250 million.

(Reporting by Mariam Sunny in Bengaluru; Editing by Shounak Dasgupta)