Biotechnology company Orgenesis has signed an agreement to acquire US-based regenerative medicine company Koligo Therapeutics.
Koligo is involved in the development of personalised cell therapies using the cells of the patient.
The company already commercialised its first commercial product Kyslecel for the treatment of chronic and acute recurrent pancreatitis.
Upon completion of the deal, Orgenesis intends to boost the commercial scaleup of Kyslecel across the US.
Koligo is also planning to begin a phase 2 trial of KT-PC-301 for Covid-19 related acute respiratory disease syndrome (ARDS).
The company will commence patient recruitment for a phase 2 randomised clinical trial of KT-PC-301 in Covid-19 patients, based on the FDA review and clearance of the investigational new drug application.
KT-PC-301 includes autologous stromal and vascular fraction cells (SVF) derived from each patient’s adipose (fat) tissue. It is composed of a population of mesenchymal stem cells, vascular endothelial cells, and immune cells that travels to the patient’s lungs and other peripheral sites of inflammation.
Koligo’s development stage technology uses 3D bioprinting and vascularisation (3D-V technology) with autologous cells to produce biodegradable and shelf-stable three-dimensional cell and tissue implants.
The 3D-V bioprinting technology has been designed to develop multiple product candidates to treat diabetes, cancer, neurodegenerative disease, and other serious diseases.
As per terms of the agreement, Orgenesis will purchase all of the outstanding stock of Koligo from its shareholders.
The financial terms include an aggregate of $15m in shares of Orgenesis’ common stock valued at $7.00 per share that will be issued to Koligo’s accredited investors and an assumption of $1.3bn in Koligo’s liabilities.
Orgenesis CEO Vered Caplan said: “We are pleased to announce this transformative acquisition, which we expect will add broad capabilities to our therapeutic and technology platform, and will further our leadership in the cell and gene therapy field.”