TiGenix to sell Dutch manufacturing facility to PharmaCell

Belgian cell therapy firm TiGenix (NYSE Euronext: TIG) has signed an agreement for the sale of its state-of-the-art Dutch production facility to Netherlands-based PharmaCell for a total consideration of 5.75 million euros ($7.8 million).

PharmaCell, a leading European-based contract manufacturing organization active in the area of cell therapy and regenerative medicine, is to acquire the shares of TiGenix' wholly-owned subsidiary TiGenix BV, which holds the Dutch manufacturing facility.

Under the terms of the agreement, TiGenix will receive an upfront payment of 3.5 million euros when the sale becomes effective and a final payment of 750,000 euros after three years. In addition, ChondroCelect, a marketed product for cartilage repair, will continue to be manufactured at the facility under a long-term manufacturing agreement, under the terms of which TiGenix will benefit from a cost relief of 1.5 million euros during the first three years, the largest portion of which will fall in the first year.