Orgenesis Inc ORGS has entered into a definitive agreement with MM OS Holdings, an affiliate of Metalmark Capital Partners, to acquire its approximate 25% stake in Octomera.
Octomera is Orgenesis’s cell processing services subsidiary, and the transaction allows the company to have 100% ownership of this business unit.
In exchange, Metalmark will receive a royalty of 5% of the net revenue of Octomera’s cell processing services for the three calendar years 2025-2027, along with a portion of the proceeds attributable to Octomera’s cell processing services should there be a change of control in the next ten years.
“Moreover, we believe that further support is coming from FDA and EMEA regulators that are taking initiatives to progress the guidelines for decentralized production, understanding that cost pressures, capacity constraints, and surging patient demand are encouraging hospitals to consider the paradigm-shifting decentralized approach that brings processing services closer to the patient and unlocking the associated benefits,” said Vered Caplan, CEO of Orgenesis.
Price Action: ORGS shares closed at $0.32 on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
