Japan's FUJIFILM to Acquire U.S. Cellular Dynamics for $307M

Japan's Fujifilm to Acquire U.S. Cellular Dynamics for $307M
March 30, 2015
By Alex Keown, BioSpace.com Breaking News Staff

TOKYO – Cellular Dynamics International, a manufacturer of human cells used in drug discovery and screenings, will be acquired by FujiFilm Holdings Corporation for $307 million, Fuji announced this morning.

News of the acquisition sent stock prices souring this morning, with shares up more than 100 percent. CDI was founded in 2004 and listed on NASDAQ in July 2013.

CDI and Fujifilm share a common strategic vision for achieving leadership in the field of regenerative medicine. The combination of CDI's technology with Fujifilm's technologies, know-how, and resources brings us ever closer to realizing the promise of discovering better, safer medicines and developing new cell therapies based on iPSCs,” CDI Chief Executive Officer Robert Palay said in a statement.

CDI’s cellular technology platform allows the company to develop fully-functioning human cells , including induced pluripotent stem cells (iPSCs), on an industrial scale. The created cells are then used by various drugmakers to test the safety and efficacy of small molecule and biological drug candidates in the research and development of cellular therapeutics and stem cell banking. CDI's proprietary “iCell” product catalogue encompasses 12 different iPSC based cell types, including iCell Cardomyocytes, iCell Hepatocytes, and iCell Neurons.

Last month the company announced its iCell Hepatocytes, or human liver cells manufactured from induced pluripotent stem cells (iPSCs), were used as a malaria-in-a-dish model to test anti-malarial drug candidates.

CDI’s products are being used by a growing number of pharmaceutical, biotech and CRO companies, as well as academic researchers.

During 2014 CDI sold to 18 of 20 top biopharmaceutical companies, according to company records. The company’s top 10 customers averaged $1.1 million in revenue for 2014, up 33 percent from $830,000 in 2013.

CDI recently announced the completion of two cGMP-compliant iPS cell lines with HLA types, which may reduce the likelihood of transplant immune rejection. CDI is also developing iPS cells for preclinical studies focused on dry age-related macular degeneration4 for a National Eye Institute program.

The company’s technology platform was selected by the California Institute for Regenerative Medicine to establish iPS disease cell banks.

Fuji said the acquisition of CDI will allow the company to gain entry into the area of iPS cell-based drug discovery support services. Fuji has developed highly-biocompatible recombinant peptides which can be shaped for use as a cellular scaffold in regenerative medicine in conjunction with CDI's products.

CDI’s work will go hand-in-hand with work done by current Fuji subsidiary, Japan Tissue Engineering, which markets regenerative medicine products in Japan.

CDI earned $16.7 million in 2014, with a 57 percent revenue increase shown in the fourth quarter of 2014. The company will continue to operate in Madison, Wisc. and Novato, Calif. as a subsidiary of FujiFilm. The finalization of the acquisition, which is conditional upon regulatory approval, should be complete by April 6.

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