Orgenesis Inc.: Ramping Up The Search For A Cure For Type I Diabetes

The search to find a cure for Type 1 Diabetes has continued with the acquisition of ULB (Universite Libre de Bruxelles) spin-off MaSTherCell by pre-clinical cell therapy and regenerative medicines company Orgenesis Inc ORGS on March 9.

Scott Carmer, CEO of Orgenesis North America, provided Benzinga with details about the acquisition, as well as a progress report on the search for a cure.

Related Link: How Orgenesis Hopes To Cure Type 1 Diabetes

The Benefits Of Acquisition

According to Carmer, The MaSTherCell acquisition allows Orgenesis to get even closer to the manufacturing and distribution of the company's Autologous Insulin Producing (AIP) cells.

Additionally, he said this acquisition "enables Orgenesis to incorporate the manufacturing process in close geographic proximity to European clinical investigation sites."

Carmer added, "Finally, by evolving what was previously a strategic partnership into an acquisition, we reduce our development costs since we can now manufacture for clinical without the need to pay a third party."

Moreover, Carmer said, "The MaSTherCell and Orgenesis teams can work even more closely together to improve our overall Cost of Goods – and make our final product more cost-effective for patients."

Diversification Of A Business Model

According to Carmer, the MaSTherCell acquisition creates a new and vertically integrated business that allows for diversification of the company's business model.

The benefit to Orgenesis, an early stage clinical company, is the addition of a highly innovative, revenue-producing business in a rapidly growing and highly complex industry.

The benefits to MaSTherCell include an increasing geographic footprint through the Orgenesis clinical development and commercialization plan and access to public markets and investors, Carmer said.

An Independent Business Unit

According to Carmer, although wholly owned by Orgenesis, MaSTherCell will "act and operate as [an] independent business unit."

In other words, both companies will be strategically aligned, but operationally independent.

MaSTherCell, Carmer noted, will focus on serving existing clients, while growing its customer base by expanding into new markets as part of the Orgenesis clinical development program.

"Orgenesis will continue implementation of its Global Phase 1/2 Type I Diabetes clinical development program and applications for its Cellular Transdifferentiation technology platform," Carmer said.

Related Link: 3 Companies Helping To Keep Diabetes Rates Lower

A Treatment Timeline

With regard to a final combination of all resources, Carmer said, "We are finalizing our Good Manufacturing Practice (GMP) systems at our MaSTherCell facility in Belgium, and supplementing U.S. required preclinical testing in Maryland.

"Upon completion of our final preclinical toxicology studies," he said, "we expect to engage global regulatory agencies with our Investigational New Drug (IND) application."

Phase 1 clinical trials could begin sometime in 2016, Carmer said.

At the time of this writing, Jim Probasco had no position in any mentioned securities.