Mustang Bio, Inc. (Nasdaq: MBIO) is thrilled to announce that on July 28, 2023, it has successfully amended and closed the transaction for an asset purchase agreement with uBriGene (Boston) Biosciences Inc, a top CDMO in the cell and gene therapy space. This strategic move is a major milestone for Mustang, bringing us one step closer to our goal of creating potential cures for difficult-to-treat cancers and rare genetic diseases.
At closing, uBriGene acquired Mustang’s assets relating to cell and gene therapies for an upfront consideration of $6 million in cash. An additional $5 million is contingent on Mustang raising $10 million in gross proceeds from equity raises after closing, as well as the approval of Mustang’s facility lease transfer to uBriGene by the landlord. In the interim, Mustang will continue to occupy the leasehold premises and manufacture its lead product candidate, MB-106.
The amended asset purchase agreement between Mustang and uBriGene shows that the two companies are determined to execute the original plan of transferring the manufacturing facility to uBriGene.
The companies are aiming to obtain clearance from the U.S. Committee on Foreign Investment in the United States (“CFIUS”) by August 31, 2023. If, after 120 days of closing, uBriGene has still not been able to acquire the lease, the two sides will start negotiations in good faith for Mustang to repurchase the transferred assets.
In just three business days, uBriGene is set to take possession of the leased facility, taking on the related contracts and employees who have accepted offers. From the moment the landlord signs off on the lease transfer, Mustang employees who support the transferred operations will have thirty days to become part of the uBriGene team.
At closing, Mustang and uBriGene entered into a manufacturing services agreement, wherein uBriGene will manufacture Mustang’s first-class CD20-targeted autologous CAR T therapy, MB-106, for a multi-center Phase 1/2 trial in non-Hodgkin lymphoma and chronic lymphocytic leukemia patients.
Additionally, subject to landlord approval, Mustang and uBriGene will execute a second manufacturing services agreement, wherein Mustang will serve as the contract development and manufacturing provider for MB-106 and potentially other cell and gene therapies, in exchange for operating cost compensation.
Manuel Litchman, M.D., President and Chief Executive Officer of Mustang, is delighted about the successful closing of the strategic transaction with uBriGene, which will help Mustang make the most of its resources and focus on progressing its leading clinical-stage programs.
This further provides Mustang the opportunity to reach vital near-term milestones while reducing operating costs and bolstering cash reserves. In the near future, Mustang expects to share the initial clinical data from its MB-106 multicenter program.
The transaction has resulted in significant proceeds for Mustang and reduced its operating expenses, significantly improving the company’s cash flow. This, combined with strategic optimization of its resources, has enabled Mustang to extend its financial runway into early 2024.
The Worcester facility is a remarkable 27,000 square foot powerhouse of innovation designed to revolutionize the future of cell and gene therapy production. With cutting-edge cGMP technology, the facility boasts unparalleled flexibility, supporting an array of process development, manufacturing and analytical testing capabilities – all conveniently packaged with the incredible ability to expand and evolve in accordance with future needs.
uBriGene is thrilled to join forces with Mustang to expand the capabilities of the Worcester site. This exciting transaction will allow uBriGene to use Mustang’s experienced personnel and top-shelf quality and operating systems to manufacture an array of advanced modalities.
Meanwhile, uBriGene will be lending its skills in preclinical research services and late-stage and commercial production of advanced therapy products, from product and process characterization to regulatory inspections.
Mustang is packing its bags and saying goodbye to its longtime home, as it begins its move to 1 Mercantile Street in Worcester, MA. With the recent transfer of the lease to uBriGene, this marks the start of a brand new era for Mustang, where it can look forward to exciting opportunities and expanded success.
Mustang recently filed a Current Report on Form 8-K with the SEC, dated July 31, 2023, providing further details regarding the amended asset purchase agreement and closing of the transaction announced in this press release.
The Form 8-K offers readers a comprehensive understanding of the terms of the amended asset purchase agreement, the manufacturing services agreements, the transaction, and the closing.
About uBriGene (Boston) Biosciences Inc.
At uBriGene Biosciences Inc., our commitment to providing cutting-edge one-stop CDMO services for cell and gene therapy knows no bounds. Our integrated biologics CDMO platform supports preclinical to clinical and commercial stages. All of our viral vector services, such as adeno-associated and lentiviral vectors, are available to meet any research or manufacturing need.
Our fermentation capacity can range from 5L to 500L while offering research-grade, GMP-ready, or GMP-grade plasmids. Furthermore, our two state-of-the-art GMP facilities contain 21 clean suites, covering over 133,000 sq ft. of space. Let us help you make your futuristic gene therapy dreams a reality.
About Mustang Bio
Mustang Bio is a biopharmaceutical company on a mission to translate ground-breaking cell and gene therapies into cures for difficult cancers and rare diseases. Working with top medical institutions, Mustang is exploring the potential of CAR-T therapies for a variety of cancers, and lentiviral gene therapies for severe combined immunodeficiency.
Registered with the SEC, Mustang is listed on the Nasdaq and is a subsidiary of Fortress Biotech, Inc. (NBA: FBIO). With cutting-edge research and development, Mustang is making waves as it works towards their goal of transforming treatment for people worldwide.