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Players in their respective business areas are entering into mergers and acquisitions to drive growth, boost geographical presence, enter new business verticals, and stay ahead of the competition. Similar trends are visible wherein firms enter into mergers and acquisitions to expand their presence in the gene editing space. For instance,
• In February 2022, Intellia Therapeutics, one of the leading developers of CRISPR-based medicines, announced that the firm had acquired Rewrite Therapeutics for US$45 million. This acquisition is part of the firm's strategy to expand its presence in gene editing.
• Founded in 2016, Rewrite Therapeutics has been developing a genetic code technology, combining a type of DNA-assembling enzyme with a modified version of the CRISPR-cas9 system. This technology has been used by Intellia Therapeutics (Intellia) and other gene editing biotech firms as the basis of their experimental drugs.
• Through the acquisition of Rewrite Therapeutics, Intellia is expected to explore a different type of gene editing than the one it is currently developing. The technology offered by Rewrite Therapeutics can help Intellia make edits to single DNA letters and edit cells more efficiently, which do not divide frequently.
• Moreover, the acquisition can help Intellia target diseases not easily addressable by first-generation CRISPR-cas9 editing. Based on the terms of the acquisition, Rewrite Therapeutics shareholders can earn an additional US$155 million in cash and stock if specific research and regulatory milestones are achieved. These milestones, however, are not yet revealed by the firms.
With gene editing becoming one of the largest biotech opportunities of the decade, more and more players are seeking the merger and acquisition route to gain access to gene editing technology. For instance,
• Lesaffre, one of the global key players in fermentation, announced that it had gained access to gene editing technology through the acquisition of Recombia Biosciences in August 2022. Notably, Recombia Biosciences is a biotech firm based in the United States.
• The acquisition of Recombia Biosciences is part of Lesaffre's strategy to develop yeasts for sustainable production of fermented ingredients. The two firms initially entered into a strategic alliance in 2020 to design and develop yeast strains and optimize the production of various bio-sourced ingredients and biofuels.
• In October 2021, ElevateBio, a cell and gene therapy firm, announced the acquisition of Life Edit Therapeutics, a firm that develops a next-generation gene editing platform. Notably, this acquisition will allow ElevateBio to integrate the gene-editing capabilities of Life Edit Therapeutics with its cell and gene therapies.
As more and more companies enter the biotech sector seeking to amplify their performance or embrace innovative and disruptive technologies, these mergers and acquisitions are expected to further drive innovation and growth in the gene editing space from the short to medium-term perspective.
