Vaccine reagent vendor Maravai draws private equity interest-sources

Maravai Lifesciences Holdings

16/05/2023 14:42

By Greg Roumeliotis
       NEW YORK, May 16 (Reuters) - Maravai LifeSciences
Holdings Inc  MRVI.O , a provider of capping reagents for
COVID-19 vaccines whose shares plunged after the pandemic eased,
has attracted private equity interest, people familiar with the
matter said.
    Buyout firm Thomas H. Lee Partners has approached Maravai,
which has a market capitalization of about $3.8 billion, with a
non-binding offer, the sources said. The price offered could not
be learned.
    Maravai rejected the offer, and there is no certainty that a
new bid will follow or that any deal will be reached, the
sources added.
    Nevertheless, the acquisition approach shows how Maravai has
become a takeover target after it lost three-quarters of its
value from its August 2021 peak, when the scramble to develop
COVID-19 vaccines using mRNA technology buoyed its reagent
business. Since then, Maravai has been trying to pivot to other
mRNA-based vaccines. 
    The sources requested anonymity because the matter is
confidential. Spokespeople for Maravai and Thomas H. Lee
Partners did not respond to requests for comment.
    Maravai last week revised its 2023 revenue guidance down by
$20 million to between $400 million and $440 million, about half
what it generated in 2022. The San Diego-based company blamed a
"sluggish" biotech market for the slowdown.
    Following the success of COVID-19 vaccines, drugmakers are
racing to apply mRNA technology in the development of other
vaccines, including for cancer and  tuberculosis. Maravai has
been positioning to capture market share when production of
these vaccines takes off in the next few years.
    Maravai rejected a $42 per share all-cash offer from
laboratory supplies vendor Sartorius AG  SATG.DE  in February
2022 as inadequate, Reuters reported at the time. Maravai shares
have since dropped and ended trading on Monday at $15. 
    Maravai has also struggled with its CEO succession planning.
It tapped former Danaher Corp  DHR.N  executive Trey Martin as
chief executive in October, but Danaher sued claiming a breach
of his non-compete agreement. 
    Maravai settled with Danaher by agreeing to delay Martin's
appointment and preclude his involvement in its nucleic acid
production operations until the end of July. Maravai co-founder
and executive chairman Carl Hull is currently serving as interim
CEO.

 (Reporting by Greg Roumeliotis in New York
Editing by Anirban Sen and Mark Potter)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))