Avalon GloboCare Corp (NASDAQ:AVCO) told shareholders that its acquisition of Hebei Senlang Biotechnology Co Ltd, the largest cell therapy company in northern China in terms of biomanufacturing, clinical development programs, and pre-clinical research, will enhance the company's capabilities in cell and gene therapy.
The deal, which was announced June 13, 2021, will see Avalon enter into a share purchase agreement for an aggregate of 81 million shares of its common stock, valued at US$0.0001 per share.
SenlangBio’s core technology platforms include chimeric antigen receptor (CAR) T-cells (CAR-T), allogeneic CAR Gamma Delta T-cells (CAR-γδT), and armored tumor infiltrating lymphocytes (armTILs).
READ: Avalon GloboCare inks definitive agreement to acquire Chinese cell therapy company Senlang Biotechnology
Avalon will acquire SenlangBio’s proprietary cellular therapy portfolio consisting of multiple autologous and allogeneic candidates, including both single-target therapies as well as ‘cocktail’ combinations.
“We recently entered into a definitive purchase agreement to acquire SenlangBio, a world-class cell therapy company. We believe that the acquisition, which is subject to certain previously disclosed closing conditions, will significantly enhance Avalon’s capabilities in cell and gene therapy, expanding our therapeutic pipeline by adding 15 autologous and universal (“off-the-shelf”) cell therapy programs,” David Jin, president and chief executive officer, said in an update to shareholders.
Jin added: “SenlangBio has applied its cellular therapeutics technology to develop a broad range of cellular therapy candidates including CAR-T, CAR-γδT and armored tumor infiltrating lymphocytes, with potential applications to a wide array of hematologic malignancies and solid tumors. This transformative acquisition will significantly contribute to sustainable and successful growth and development of Avalon.”
As part of the all-stock transaction, Avalon was also able to secure approximately US$30 million from an institutional healthcare investor for 13.5% equity interest in SenlangBio, on favorable terms and without warrants or other equity-linked or debt instruments related to the financing.
In connection with the acquisition, the company intends to integrate both Avalon’s and SenlangBio’s technology platforms and manufacturing/bio-processing infrastructure, which is expected to significantly reduce costs and accelerate the clinical translation of cellular technologies.
“For the year ended December 31, 2020 and the three months ended March 31, 2021, SenlangBio generated revenue of US$1.1 million and US$1.2 million, respectively, and had a net loss of US$2.4 million and US$135,000, respectively,” Jin added. “As a vertically integrated leader in cellular medicine with a strong technology platform that we believe can rapidly deliver life-saving cellular therapeutics to patients, I could not be more excited about the operational and financial outlook for our business.”
Contact the writer at firstname.lastname@example.org
Follow her on Twitter @MissInformd