Posted on Monday, April 25, 2022
Erytech Pharma, a clinical-stage biopharmaceutical company that develops innovative therapies by encapsulating drugs in red blood cells, announced the sale of its US manufacturing site to Catalent, a contract development and manufacturing (CDMO) company, leader in the field of innovative therapies.
Under the terms of the asset purchase agreement between Erytech and Catalent, Catalent is acquiring Erytech’s commercial-scale cell therapy manufacturing facility in Princeton, New Jersey, United States for a total consideration of $44, $5 million. Catalent proposes to take over the current staff of the Erytech site, approximately 40 people.
The parties will also enter into a long-term supply agreement, under which Catalent will manufacture Erytech’s lead product candidate, eryaspase (GRASPA®), for clinical and commercial supply in the United States. Erytech is currently conducting a Phase 1 clinical study in the first-line treatment of pancreatic cancer in the United States and maintains an ongoing dialogue with the Food and Drugs Administration (FDA) regarding the potential submission of a Biologics License Application – BLA) for GRASPA® in the treatment of Hypersensitive Acute Lymphoblastic Leukemia, now scheduled for the third quarter of 2022, subject to the resolution of outstanding points and questions posed by the FDA.
Catalent will also make its expertise in the manufacture of innovative therapeutic products at late stage and commercial use available, including product characterization, commercial production, inspections and regulatory approvals.
The Erytech site in Princeton is a state-of-the-art manufacturing unit of approximately 3000 m², designed to be able to meet a variety of cell therapy production needs and capacities. Catalent plans to expand the Princeton site and leverage Erytech’s skilled personnel to manufacture an expanded portfolio of cell therapy products. Erytech retains its French manufacturing site in Lyon, as well as its know-how and skills in production processes to pursue innovation in the manufacture of cell therapies.
“Catalent is an excellent partner for the manufacturing of our innovative red blood cell-derived products, and we are confident that this strategic partnership will meet our long-term manufacturing needs in the United States,” said Gil Beyen, CEO of Erytech. “I would like to warmly thank our entire Princeton team for their talent and dedication in building and developing this site since its inception in 2018, especially at this time when we are turning an important page for the Company. Erytech will now focus its resources on the eventual regulatory approval and commercialization of GRASPA®, as well as the development of potentially promising therapies in the treatment of serious diseases. We are also continuing to evaluate other strategic options for the company, including complementary partnerships and the acquisition of additional assets, through which we can leverage our ERYCAPS® platform and our development and manufacturing capabilities. »
“This acquisition is strategically important in Catalent’s commitment to support the development, clinical and commercial distribution of cell therapies to meet rapidly growing needs,” said Manja Boerman, Ph.D., President of Catalent Cell. & Gene Therapy. “The knowledgeable and experienced staff already employed at the site, the facilities in place, and the ability to quickly add additional capacity at that same site, will allow Catalent to grow rapidly to create a US campus and center of excellence for developing and manufacturing cell therapies that will be accessible to customers around the world. »
As of December 31, 2021, Erytech’s cash and cash equivalents amounted to €33.7 million (approximately $38.1 million). At closing, cash and cash equivalents are expected to be approximately €55 million ($60 million) taking into account the payment of $44.5 million ($40.8 million ). Thanks to the decrease in cash outflows of approximately $7.5 million related to the operating costs of the Princeton site, Erytech estimates that this cash position should finance its operations in the current configuration until mid-2024.
Source and visual: Erytech
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