01.28.19
Orgenesis, a developer, manufacturer and service provider of advanced cell therapies, said that its subsidiary, Masthercell Global, is expanding into the U.S. and has executed a lease agreement to build a new 30,000 square foot manufacturing facility in Houston, TX. Masthercell Global is a cell and gene therapy contract development and manufacturing organization (CDMO) that will now have operations and manufacturing facilities across three continents—North America, Europe and Asia.
The company also revealed that Masthercell Global has received the first milestone payment of $6.6 million per its previously announced strategic partnership with Great Point Partners, (GPP) in accordance with the Stock Purchase Agreement announced on June 28, 2018. Under the terms of the agreement, GPP provided an upfront payment of $11.8 million into Masthercell Global, out of a total $25 million planned investment, with the remaining investment being provided by GPP in two equal installments subject to Masthercell Global achieving certain milestones relating to net revenue and EBITDA. This first milestone payment was triggered upon Masthercell Global achieving certain financial based milestones. The additional funding provided by GPP will be used to launch the new U.S. facility, expand the facilities in Europe, Israel, and Korea.
“We are thrilled with the performance of Masthercell Global since the GPP investment, and this latest tranche of funding will help drive additional growth,” said Vered Caplan, chief executive officer, Orgenesis. “The additional capacity provided by this expansion should allow us to expand our presence in North America and enhance the services for our customers in order to fully capitalize on the growing global market demand.”
Noah Rhodes, managing director, GPP, said, “The new U.S. facility will enable new and existing clients to work with Masthercell Global across the world. Masthercell Global’s international reach will allow for more innovation and efficient processes, while ensuring the same quality standards across the company.”
The company also revealed that Masthercell Global has received the first milestone payment of $6.6 million per its previously announced strategic partnership with Great Point Partners, (GPP) in accordance with the Stock Purchase Agreement announced on June 28, 2018. Under the terms of the agreement, GPP provided an upfront payment of $11.8 million into Masthercell Global, out of a total $25 million planned investment, with the remaining investment being provided by GPP in two equal installments subject to Masthercell Global achieving certain milestones relating to net revenue and EBITDA. This first milestone payment was triggered upon Masthercell Global achieving certain financial based milestones. The additional funding provided by GPP will be used to launch the new U.S. facility, expand the facilities in Europe, Israel, and Korea.
“We are thrilled with the performance of Masthercell Global since the GPP investment, and this latest tranche of funding will help drive additional growth,” said Vered Caplan, chief executive officer, Orgenesis. “The additional capacity provided by this expansion should allow us to expand our presence in North America and enhance the services for our customers in order to fully capitalize on the growing global market demand.”
Noah Rhodes, managing director, GPP, said, “The new U.S. facility will enable new and existing clients to work with Masthercell Global across the world. Masthercell Global’s international reach will allow for more innovation and efficient processes, while ensuring the same quality standards across the company.”
