Gosselies, Belgium – July 2, 2018. MaSTherCell, a leading Cell therapy Contract and Manufacturing Organization (CDMO), announced today a new strategic step in its corporate development. MaSTherCell Global – a gathering of MaSTherCell (Belgium), Atvio Biotech Ltd., an Israel-based CDMO partner, and Curecell Co. Ltd., a Korea-based CDMO partner – will beneficiate from a USD 25 million funding from a partnership between Orgenesis Inc. and Great Point Partners (GPP), a leading health care investment firm based in Greenwich, Connecticut, in order to finance, strengthen and expand MaSTherCell Global’s activities.
Masthercell Global Inc. (“Masthercell Global”) is the newly formed subsidiary of Orgenesis Inc. (Nasdaq: ORGS), a manufacturer, service provider and developer of advanced cell therapies. With this new partnership formed between Orgenesis and Great Point Partners, MaSTherCell Global plans to launch U.S.-based operations and continue expanding its global services.
Under the agreement, GPP will fund, assist and advise on the launch of Masthercell Global’s U.S. operations, as well as global expansion activities. GPP will invest up to $25 million into Masthercell Global, representing 37.8% of the issued and outstanding equity share capital of Masthercell Global. Masthercell Global shall receive an initial upfront payment of $11.8 million, with the balance subject to achieving certain specified EBITDA and revenue targets.
Masthercell Global and GPP also entered into an Advisory Services Agreement (Advisory Agreement) pursuant to which GPP will be providing assistance and advice on operations, planning and financing of the Masthercell Global’s operations. Under the Advisory Agreement, GPP will provide support to Orgenesis in managing and operating Orgenesis’ CDMO business through Masthercell Global.
The initial board of directors of Masthercell Global will be comprised of seven directors:
- Noah Rhodes, Managing Director at Great Point Partners
- Jeffrey R. Jay MD, Senior Managing Member at Great Point Partners
- Stephen Weaver, Senior Vice President at Great Point Partners
- Vered Caplan, CEO of Orgenesis Inc.
- Rosemary Mazanet, MD PhD, President of R. Mazanet LLC
- Darren Head, President at Head Bio Consulting
- Mark Cohen, Senior Partner and Chair of the Life Science Practice Group at Pearl Cohen
Denis Bedoret, Managing Director at MaSTherCell, noted, “Entering the U.S. market was one of our strategic objectives. I am therefore pleased to see that this ambitious project is coming to fruition. This will allow us to offer local U.S. production to our existing customers based in the United States, but also to respond positively to new customers who wish to conduct clinical trials there with us”.
Noah Rhodes, Managing Director at Great Point Partners, commented, “With limited resources until now, Orgenesis has built an impressive global CDMO business, with a customer base that is at the cutting edge in providing industrialization capabilities to cell therapy organizations. Therapeutic industrialization has been the historic Achilles heel of this industry, and Masthercell has developed a highly scalable and cost-effective business model. Given the explosive growth in this market, we are excited to partner with Orgenesis following our extensive due diligence, in order to help accelerate Masthercell Global’s network both in the U.S. and around the world.”
About Great Point Partners
Great Point Partners (“GPP”), founded in 2003 and based in Greenwich, CT, is a leading health care investment firm with approximately $1.1 billion of equity capital currently under management and 28 professionals, investing in the United States, Canada, and Western Europe. GPP is currently making new private equity investments from GPP II, which has closed on $215 million. Great Point manages capital in private (GPP I, $156 million and GPP II, $215 million of committed capital) and public (BioMedical Value Fund strategy, approximately $720 million) equity funds. Great Point Partners has provided growth equity, growth recapitalization, and management buyout financing to more than 100 growing health care companies. The private equity funds invest across all sectors of the health care industry with particular emphasis on biopharmaceutical services and supplies, outsourcing and alternate site care, pharmaceutical infrastructure and information technology enabled businesses. The firm pursues a proactive and proprietary approach to sourcing investments and tuck-in acquisitions for its portfolio companies. For further information, GPP can be reached at (203) 971-3300 or by visiting www.gppfunds.com.
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