Shares of US biopharma firm Orgenesis (Nasdaq: ORGS) rocketed more than 35% to $6.77 in pre-market trading today, after announcing that Catalent (NYSE: CTLT) has agreed to acquire MaSTherCell Global, a contract development manufacturing organization (CDMO) subsidiary of Orgenesis, which is also backed by Great Point Partners and SFPI-FPIM.
Orgenesis, which acquired MaSTherCell in 2015 in exchange for $24.6 million worth of shares, anticipates that it will receive proceeds of around $126.7 million resulting from the all cash transaction, which Catalent says has a total value of $315 million. Catalent’s shares were up 12.5% at $68.798 in early trading.
The transaction is expected to close during the current fiscal first quarter of 2020. Orgenesis expects to use the net proceeds from the sale of Masthercell, which is based in Belgium, to continue to grow its point-of-care cell therapy business and to further the development of advanced therapy medicinal products.
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