ORGS - Orgenesis Acquires Control of Octomera with the Goal of Progressing its Decentralized Immuno-Oncology Portfolio to Clinic | Benzinga
GERMANTOWN, Md., Jan. 31, 2024 (GLOBE NEWSWIRE) -- Orgenesis Inc. (NASDAQ:ORGS) ("Orgenesis" or the "Company"), a global leader in decentralizing cell and gene therapies (CGTs), today announced it has entered into a definitive agreement with MM OS Holdings L.P., an affiliate of Metalmark Capital Partners ("Metalmark"), for the acquisition of its approximate 25% stake in Octomera LLC ("Octomera"), the cell processing services subsidiary of the Company, thereby allowing the Company to have 100% ownership of this core strategic business unit. In exchange, Metalmark shall receive a royalty of 5% of the net revenue of Octomera's cell processing services, for the three calendar years 2025-2027, along with a portion of the proceeds attributable to Octomera's cell processing services should there be a change of control in the next 10 years.
Vered Caplan, CEO of Orgenesis, commented, "2023 has been a challenging year for the industry as lack of funding for early-stage companies has slowed down many companies, including our own customers and partners, increasing pressure on suppliers to the industry, while accelerating the need for lower-cost and more-efficient development and supply solutions. These factors highlight the need and are driving demand for our decentralized cell therapy approach. Moreover, we believe that further support is coming from FDA and EMEA regulators that are taking initiatives to progress the guidelines for decentralized production, understanding that cost pressures, capacity constraints and surging patient demand are encouraging hospitals to consider the paradigm-shifting decentralized approach that brings processing services closer to the patient and unlocking the associated benefits."
"In addition to continuing third-party cell therapy services, on the cell therapeutics side, there is growing market awareness around safety issues and the immense cost burden of many first-generation approved cell and gene therapies. In parallel to progressing our decentralized Octomera platform, the Company's most advanced oncology therapeutic in development continues to make significant advances in terms of decentralized GMP production and proof of ...