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Mustang Bio has announced the amendment and closing of the strategic manufacturing partnership transaction with the U.S. subsidiary of uBriGene Group, uBriGene (Boston) Biosciences, under the terms of the amended asset purchase agreement.
According to the amended agreement at closing, uBriGene acquired Mustang’s assets relating to the manufacturing and production of cell and gene therapies for the upfront consideration of $6 million cash. Mustang will receive an extra $5 million if they raise $10 million in gross proceeds from equity raises after the transaction and assignment of the lease to uBriGene is completed. However, this is still subject to the approval of the landlords.
The amended asset purchase agreement states that Mustang will continue to work with uBriGene to secure the assignment of its manufacturing facility lease as originally planned. By August 31, 2023, Mustang and uBriGene are expected to complete their filing of a joint voluntary notice to obtain clearance for the transaction from the U.S. Committee on Foreign Investment in the United States (CFIUS). CFIUS requires up to 90 days to complete its review and Mustang’s landlord requires an additional 30 days to review the request for consent to assign the lease. If, for any, reason the lease does not transfer to uBriGene, uBriGene may request the parties to use their most effective commercial efforts to negotiate a repurchase by Mustang of the transferred assets and assumed liabilities acquired on the date of closing.
Mustang’s employees who support the transferred operations and have accepted offers of employment with uBriGene will become employees of uBriGene 30 days after the completion of the lease transfer.
Manuel Litchman, M.D., President and CEO of Mustang, said:
“We are very pleased to have closed this strategic transaction with uBriGene. This transaction will allow Mustang to optimize its resources and focus on advancing our lead clinical-stage programs in order to achieve multiple near-term milestones, while significantly reducing our operating expenses and enhancing our cash position. We look forward to reporting initial clinical data from our MB-106 multicenter program soon.”
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At closing, Mustang and uBriGene also entered into a manufacturing services agreement where Mustang has contracted uBriGene to manufacture Mustang’s lead product candidates, including MB-106, the company’s first-in-class CD20-targeted autologous CAR T therapy, for the ongoing multi-center Phase I/II trial in patients with non-Hodgkin lymphoma and chronic lymphocytic leukemia. There is also a second manufacturing agreement in which Mustang will serve as uBriGene’s contract development and manufacturing provider and will continue to manufacture MB-106 and potentially other cell and gene therapies.
Alex Chen, President of uBriGene, said:
“uBriGene will also offer its expertise in preclinical research services and late-stage and commercial manufacturing of advanced therapy products with respect to product and process characterization, and regulatory inspections.”
Worcester facility is 27,000 sq. ft. and operates under cGMP. It provides process development, manufacturing, and analytical testing for cell and gene therapies with expandable production capabilities. It’s a cutting-edge facility.
Upon transfer of the lease to uBriGene, Mustang’s headquarters will relocate to 1 Mercantile Street, in Worcester, MA
Source: Mustang Bio Press Release
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