LEUVEN, Belgium, Jan. 24, 2014 (GLOBE NEWSWIRE) -- TiGenix (NYSE Euronext: TIG), a leader in the field of cell therapy, announced today that it has signed an agreement for the sale of its state-of-the-art Dutch production facility to PharmaCell B.V for a total consideration of EUR 5.75 million. PharmaCell, a leading European-based contract manufacturing organization active in the area of cell therapy and regenerative medicine, is to acquire the shares of TiGenix's wholly owned subsidiary TiGenix B.V., which holds the Dutch manufacturing facility.
Under the terms of the agreement, TiGenix will receive an upfront payment of EUR 3.5 million when the sale becomes effective and a final payment of EUR 750,000 after three years. In addition, ChondroCelect will continue to be manufactured at the facility under a long-term manufacturing agreement, under the terms of which TiGenix will benefit from a cost relief of EUR 1.5 million during the first three years, the largest portion of which will fall in the first year.
The sale of TiGenix B.V. is expected to become effective in the coming months. Closing of the transaction is subject to confirmation by the relevant authority that TiGenix B.V. is authorized to produce other products than ChondroCelect, as well as confirmation in respect of the financing of the transaction by PharmaCell.
"The agreement with PharmaCell reduces our organizational complexity and eliminates an important part of our fixed costs while keeping intact the continuity of our product supply," said Eduardo Bravo, CEO of TiGenix. "We keep diligently delivering on our action plan and securing the means to be able to execute our strategy."
In 2012, TiGenix's state-of-the-art manufacturing facility in Sittard Geleen, the Netherlands, successfully passed cGMP inspection by the Dutch authorities, and obtained approval from the European Medicines Agency for the production of ChondroCelect, the company's commercial cell therapy product for cartilage repair in the knee.
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TiGenix NV (NYSE Euronext Brussels: TIG) is a leading European cell therapy company with a marketed product for cartilage repair, ChondroCelect®, and a strong pipeline with clinical stage allogeneic adult stem cell programs for the treatment of autoimmune and inflammatory diseases. TiGenix is based out of Leuven (Belgium) and has operations in Madrid (Spain), and Sittard-Geleen (the Netherlands). For more information please visit www.tigenix.com.
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