Friday’s deal related to Hemogenyx’s advanced hematopoietic chimeras (AHC) – a new type of humanised mouse with a functional human immune system.
This latest agreement centres on Hemogenyx’s Human Postnatal Hemogenic Endothelial Cell (Hu-PHEC) technology.
Hu-PHEC is a cell replacement product candidate that is being developed to generate cancer-free, patient-matched blood stem cells after transplantation into the patient.
“We are very pleased to announce this further collaboration with Orgenesis to rapidly develop and bring to the market our Hu-PHEC technology,” said chief executive and co-found Vladislav Sandler.
“The collaboration is a testament to the value of our Hu-PHEC based approach to drastically improving bone marrow transplants.”
Up to US$4mln over three years
As with Friday’s agreement, Orgenesis, possibly alongside other investors, will invest at least another 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. Overall, Orgenesis could invest up to US$4mln 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.
In a separate manufacturing and supply agreement to be inked at a later date, Orgenesis will be able to exclusively supply Hemogenyx products at the end of the clinical development stage.
Should the two fail to sign such an agreement, Hemogenyx will pay Orgenesis an amount equal to 4% of gross revenue derived from the sale of the respective Hemogenyx Products.
Third collaboration agreement of October
In a note to clients, analysts at joint ‘house’ broker Northland Capital commented: “The agreement provides capital to further the development of the Hu-PHEC cell therapy product and has the potential to provide future revenue from royalties.”
They added: “This is the third collaboration agreement announced in October, following collaboration agreements with Janssen, a pharma company owned by Johnson & Johnson and Orgenesis regarding Hemogenyx’s AHC mouse model.
“This demonstrates the Company’s ability to generate investment from industry across its portfolio of products, an impressive feat for a preclinical stage company.“
In mid-afternoon trading, Hemogenyx shares were 1.7% lower at 2.90p, having gained over 9% in the past month.
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