Mustang Bio, Inc., a clinical-stage biopharmaceutical company, has amended its previously announced asset purchase agreement with uBriGene Biosciences Inc., the U.S. subsidiary of uBriGene Group, a cell and gene therapy CDMO.

uBriGene acquired all of Mustang’s assets primarily relating to the manufacturing and production of cell and gene therapies for a consideration of $6 million in cash. Mustang’s lease to the premises in Worcester, MA where its clinical- and commercial-scale cell and gene therapy manufacturing facility is located, did not transfer at closing as it requires the consent of the landlord, which has requested additional time to consider the proposed transfer.

An additional $5 million contingent payment will be payable to Mustang upon Mustang’s raising $10 million in gross proceeds from equity raises following the closing of the transaction and completion of the assignment of Mustang’s lease to uBriGene, which remains subject to landlord’s approval. Unless and until the lease is transferred to uBriGene, Mustang will retain its facility lease and facility personnel, and will continue to occupy the premises and manufacture its lead product candidate, MB-106.

Under the amended asset purchase agreement, the lease of the facility and related contracts are to be transferred to uBriGene following receipt of the landlord’s consent to the proposed lease transfer, and Mustang employees have accepted offers of employment with uBriGene following the completion of the lease transfer.

Mustang and uBriGene also entered into a manufacturing services agreement, under which uBriGene will manufacture Mustang’s lead product candidates. This includes the manufacturing of MB-106, the company’s first-in-class CD20-targeted autologous CAR T therapy, for the ongoing Phase 1/2 trial in non-Hodgkin lymphoma and chronic lymphocytic leukemia.

The companies have also entered into a second manufacturing services agreement, under which Mustang will serve as uBriGene’s contract development and manufacturing provider and will continue to manufacture MB-106, as well as potentially other cell and gene therapies.

The Worcester facility is a 27,000 sq.-ft. cGMP facility supporting process development, manufacturing, and analytical testing, designed with the flexibility to expand and support various cell and gene therapy production requirements and capacities.

Manuel Litchman, Mustang’s President, and CEO said, “We are very pleased to have closed this strategic transaction with uBriGene. This transaction will allow Mustang to optimize its resources and focus on advancing our lead clinical-stage programs in order to achieve multiple near-term milestones, while significantly reducing our operating expenses and enhancing our cash position. We look forward to reporting initial clinical data from our MB-106 multicenter program soon.”

“Our transaction with Mustang will permit the expansion of the Worcester site’s capabilities while leveraging Mustang’s experienced staff and robust quality and operating systems to manufacture a broader portfolio of advanced modalities,” said Alex Chen, president of uBriGene. “uBriGene will also offer its expertise in preclinical research services and late-stage and commercial manufacturing of advanced therapy products with respect to product and process characterization, and regulatory inspections.”