Zydus bolsters global biologics play with Agenus acquisition, immuno-oncology licensing pact

Zydus Lifesciences is stepping up its global ambitions with a strategic one-two punch: acquiring cutting-edge biologics manufacturing facilities in the U.S. from Agenus Inc., and locking in exclusive licensing rights for two late-stage immuno-oncology candidates in India and Sri Lanka.

Announced on Tuesday, the dual move marks a significant pivot for Zydus—from being a leading generics and speciality pharma player in India to emerging as a full-spectrum global biologics company. The deal thrusts Zydus into the high-growth global CDMO (Contract Development and Manufacturing Organisation) segment while also deepening its oncology footprint in domestic markets.

A strategic foothold in U.S. biomanufacturing

Under the terms of the acquisition, Zydus will purchase Agenus’ biologics manufacturing sites in Emeryville and Berkeley, California, for an upfront payment of $75 million, plus a potential $50 million in milestone-based payments over three years. These facilities will anchor Zydus’ newly minted biologics CDMO business, which will serve global biotech and pharma firms seeking development-to-manufacture solutions.

Crucially, Zydus will also become the exclusive contract manufacturer for two of Agenus’ Phase-3-ready immuno-oncology assets—Botensilimab (BOT) and Balstilimab (BAL)—with rights to negotiate future pipeline products. The CDMO arm will operate independently, staffed by an experienced U.S.-based team, and aims to create new jobs while supporting regional innovation.

“This acquisition gives us a strategic presence in California, the global epicentre of biotech innovation, and builds our capacity to be a reliable partner to innovation-centric companies,” said Dr. Sharvil Patel, Managing Director, Zydus Lifesciences.

Strengthening India oncology leadership with exclusive BOT/BAL rights

Parallel to the CDMO announcement, Zydus signed a definitive agreement with Agenus to commercialise the BOT/BAL combination therapy in India and Sri Lanka. Currently under advanced clinical trials, the next-gen immunotherapy duo has demonstrated encouraging results across nine tumour types in over 1,200 patients.

BOT is a novel CTLA-4 checkpoint inhibitor that activates both innate and adaptive immune responses, particularly in “cold” tumours that are resistant to existing treatments. When paired with BAL—a PD-1 blocking antibody—the combination aims to enhance treatment efficacy and durability.

Zydus will oversee clinical development and regulatory approvals in the licensed territories and pay a 5% royalty on net sales once commercialised.

“This alliance aligns with our biologics vision and bolsters our mission to address high unmet medical needs in oncology,” said Patel. “With BOT/BAL, we have the potential to bring transformative cancer therapies to Indian patients.”

Tapping the $85 billion CDMO opportunity

Zydus' CDMO foray comes amid a global biologics outsourcing boom. The market is projected to grow at a CAGR of 15.7% and reach $84.9 billion by 2034, driven by increasing biologics complexity and a surge in biotech startups lacking in-house capabilities.

By combining advanced U.S.-based infrastructure with cost-competitive scale and regulatory expertise, Zydus aims to position itself as a full-service partner from preclinical development through commercial supply.

With these moves, Zydus is clearly signalling that its ambitions go far beyond the domestic pharmaceutical space. The company is betting big on biologics as its next frontier—anchored by global manufacturing muscle and next-gen oncology breakthroughs.