Orgenesis Inc. (NASDAQ: ORGS) has transferred ownership of its Israeli cell process development business, Atvio Biotech Ltd., and its South Korean cell development and manufacturing business, CureCell Co., Ltd. from its subsidiary, Masthercell Global, to the parent company.
In a statement, the leading cell and gene therapy company said Atvio and Curecell will provide internal manufacturing services to Orgenesis, and to customers located within Israel and South Korea, respectively.
READ: Orgenesis Inc sees record fiscal 2Q revenue beat estimates
Vered Caplan, Chief Executive Officer of Orgenesis, Commented: “This internal transfer of ownership interests in both Atvio and Curecell are part of a broader initiative to realign resources within the organization to support our continued growth and meet market needs as the cell and gene therapy industry continues to expand in specific areas.
"Specifically, given the success of Masthercell Global, we are reallocating resources towards further expansion of our CDMO (contract development and manufacturing organization) capabilities for third-party cell and gene therapy services in North America and Europe.”
“Accordingly,” he added, “Orgenesis plans to focus resources within Atvio and Curecell towards advancing our ongoing therapeutic development programs, as well as supporting cell manufacturing market needs in their own respective geographical regions.
Caplan concluded: “Orgenesis remains extremely encouraged by our continued progress and the traction we are gaining within the market.”
The company provides centralized CDMO manufacturing and development services through its subsidiary MTH Global, Inc., as well as localized point-of-care development and processing centers.
Earlier this week, the Germantown, Maryland-based company posted record revenue in its fiscal second quarter driven by growth in the cell and gene therapy market.
For the quarter ended June 30, Orgenesis saw its revenue shoot up by 95% to $7.8 million, which easily beat the consensus estimate of $6.4 million.
The company said it ended the quarter with over $16 million in cash and cash equivalents.
Contact the author at jon.hopkins@proactiveinvestors.com