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Hemogenyx to receive US$1mln investment from Orgenesis as part of new collaboration deal

The biopharmas will work together to develop Hemogenyx’s AHC technology, while Orgenesis will invest at least US$1mln in Hemogenyx through a convertible loan
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Orgenesis has also been given permission to use, market and sell Hemogenyx’s technology, patents and products

HemoGenyx Pharmaceuticals PLC (LON:HEMO) shares gained on Friday after the junior biopharma said it will receive an investment of at least US$1mln as part of a new collaboration deal with Nasdaq-listed cell therapy specialist Orgenesis.

Under the terms of the deal, the two will work together to further develop and commercialise Hemogenyx’s advanced hematopoietic chimeras (AHC) – a new type of humanised mouse with a functional human immune system.

READ: Hemogenyx optimistic on CDX antibodies prospects

AHC is being developed as an in vivo platform (inside a living organism) for disease modelling and the development of drugs and cell therapies.

Because it is based on the make-up of the human body, researchers should be able to more accurately develop a treatment than if they were using just a standard model.

“As a company committed to the discovery and development of novel therapeutic products for patients suffering from blood and severe autoimmune diseases, we are pleased to partner with Orgenesis, a premier service provider in the regenerative medicine industry and a pioneer in cell reprogramming,” said Hemogenyx chief executive and co-founder Vladislav Sandler.

Investment and license agreement

In addition to working together, Orgenesis, possibly alongside other investors, will invest at least US$1mln in Hemogenyx through a convertible loan, which can be converted into either Hemogenyx or Orgenesis stock.

Orgenesis will also have the option to invest up to a further US$1mln in Hemogenyx over the next three years.

In addition, the Nasdaq company has been granted a non-exclusive licence to use, market and sell Hemogenyx’s technology, patents and products.

Hemogenyx, which will still manufacture the products and supply them to Orgenesis, will take a 12% cut of any profits Orgenesis makes from selling its technology.

“The commercial collaboration, license agreement and investment is an additional confirmation of the uniqueness and value of Immugenyx' AHC platform,” added Sandler.

Shares jump

In late morning trading, Hemogenyx shares were 7.3% higher at 2.95p.

In a note to clients, analysts at Northland Capital commented: "This collaboration is a positive step for the commercialisation of the Company’s AHC mouse model. 

"The agreement provides capital to further the development of the AHC mouse model and has the potential to provide future revenue from royalties."
 
They added: "The Company’s AHC mouse model continues to generate interest within the biopharma sector and we expect the model to form the basis of further revenue-generating collaborations."
 
 -- Adds share price, analyst comment --

 

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