TiGenix to acquire Coretherapix for €6.7m
Expands its pipeline and enters the cardiology field with purchase of cell therapy company
Belgian biotechnology firm TiGenix, a developer of novel therapeutics from its proprietary platform of allogeneic adipose-derived stem cells, has purchased Spanish cardiology-focused cell therapy company Coretherapix from Genetrix, in a cash and shares deal worth €6.7m.
Under the terms of the agreement, TiGenix has made an upfront payment of approximately €1.2 in cash and approximately €5.5m in new TiGenix shares to be issued on closing of the transaction.
Genetrix may also receive up to €15m in new TiGenix shares depending on the results of Coretherapix's ongoing clinical trial of AlloCSC-01, an experimental allogeneic cardiac stem cell product in acute myocardial infarction (AMI). Interim data is expected in the second half of 2016. The product is also in pre-clinical development for another cardiac disease.
Based on and subject to future sales milestones, Genetrix may also receive up to €245m plus a percentage of sales of the first product, or a percentage of any third party royalties and sales milestones for this product. Also, Genetrix will receive a €25m milestone payment for each additional product coming to market.
The acquisition of this technology enhances our existing platform and builds on our extensive knowledge and experience in cell therapy development
Eduardo Bravo, CEO of TiGenix, said: 'The acquisition of this technology of allogeneic cardiac stem cells enhances our existing platform and builds on our extensive knowledge and experience in cell therapy development. Tactically, it broadens our current pipeline with another Phase II programme which targets a very significant commercial opportunity. Strategically, it allows us to enter completely new markets with a platform of cardiac stem cells which could be developed in several attractive cardiology indications.'
TiGenix's Cx601 will deliver Phase III results in the treatment of perianal fistulas in Crohn's disease patients later this quarter and the company is preparing for a second Phase III trial in the US. Cx611 is ready to enter into Phase II in severe sepsis and early rheumatoid arthritis by the end of the year.
Bravo added: 'The addition of AlloCSC-01, finalising the recruitment of this Phase II in AMI and already being studied in other cardiac indications clearly positions TiGenix pipeline as one of the most advanced and diverse in the industry. This acquisition is an important step towards our ambition to become one of the world leaders in the cell therapy space.'