Orgenesis completes sale of Masthercell
18th February 2020
Orgenesis Inc., a provider of point-of-care cell and gene therapy development, processing and treatment solutions, has completed the sale of its CDMO subsidiary Masthercell Global, Inc. to Catalent Pharma Solutions. Orgenesis received net proceeds of about $127 million from the transaction.
Vered Caplan, CEO of Orgenesis, stated: “In 2015, we acquired Masthercell, having identified an industry trend and unmet demand for first-in-class cell and gene therapy CDMO services. Since acquiring Masthercell, the CDMO segment revenue has increased from a run-rate of just $3 million to a run-rate of about $30 million at the end of 2019, reflecting a compound annual growth rate of 59 per cent under our leadership, and a sale price of more than five times our initial purchase price of about $25 million. Meanwhile, the market opportunity and value proposition for Orgenesis’ POCare solutions has continued to increase, as these solutions uniquely enable localized cell and gene therapy development, processing and supply within the patient care setting. As such, we decided it was the right time to sell Masthercell to maximize value for our shareholders, and focus our efforts around our POCare solutions, which we believe represent a major paradigm shift and will play a major role in the future of the cell and gene therapy market. As previously announced, we have already established joint ventures with leading universities and health care institutions and are in advanced discussions with a number of additional major institutions around the world.”
The Orgenesis POCare platform is designed to provide unique cell and gene therapy capabilities in a cost-effective, high-quality and scalable manner, using closed systems and other advanced cell processing technologies at the point of care. In addition, the platform is being used by the company to advance its therapeutic pipeline, and to identify additional in-licensing and acquisition opportunities from biopharmaceutical companies, research organizations and health care institutes.