Brooklyn ImmunoTherapeutics Stock Rises After Novellus Therapeutics Buyout Deal

  • Brooklyn ImmunoTherapeutics LLC BTX has executed a non-binding letter of intent to acquire Novellus Therapeutics, a company developing engineered mesenchymal stem cell (MSC) therapies using mRNA cell reprogramming and gene editing technologies licensed from Factor Bioscience.
  • Under the terms of the LOI, the parties intend to sign a definitive agreement and work to close the acquisition by July 15.
  • The terms of the LOI value Novellus at $125 million, which is proposed to be paid by Brooklyn with $17.4 million in cash and $107.6 million in BTX common stock.
  • Brooklyn currently has over $43 million of cash on its balance sheet to fund the cash component of the Transaction.
  • "If the acquisition of Novellus is transacted, Brooklyn would achieve both strategic and economic benefits. This acquisition would further advance Brooklyn's evolution into a platform company with a pipeline of next-generation gene and cell therapy programs," said Brooklyn's CEO and President Howard J Federoff.
  • The acquisition of Novellus builds on the license agreement that Brooklyn executed earlier this year with Factor and Novellus.
  • The Transaction would relieve Brooklyn from the obligation to pay Novellus a set of upfront fees, clinical development milestone fees, and post-registration royalties.
  • Price Action: BTX shares are up 8.04% at $15.45 during the market session on the last check Monday.
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Posted In: BiotechM&ANewsHealth CareGeneralBriefs
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