Brooklyn ImmunoTherapeutics Plans Acquisition to Advance Next-Gen Gene and Cell Therapy Programs
Brooklyn ImmunoTherapeutics and Novellus have been doing quite a bit of business together lately, including a licensing agreement and co-locating at a research and development center. Now, a potential acquisition can be added to the growing list.
On Monday, New York-based Brooklyn announced its plans to acquire Novellus Therapeutics, a company developing next-generation engineered mesenchymal stem cell therapies.
Brooklyn ImmunoTherapeutics explores the role that cytokine and gene editing have in treatments for patients with cancer, blood disorders and monogenic disorders.
Brooklyn has executed a non-binding letter of intent (LOI) to acquire the company. Terms of the LOI include both companies intending to sign a definitive agreement and working to close the acquisition on or before July 15, 2021.
Novellus is valued at $125 million in the terms of the LOI, which is proposed to be paid by Brooklyn with a combination of $17.4 million in cash and $107.6 million in common stock.
"This acquisition would further advance Brooklyn’s evolution into a platform company with a pipeline of next-generation gene and cell therapy programs," said Brooklyn’s Chief Executive Officer and President Howard J Federoff, M.D., Ph.D. "We believe Novellus’ next-generation engineered MSC platform can position Brooklyn to become a leader in stem cell therapies, with the ability to develop multiple therapeutic candidates rapidly."
Monday's announcement stems from a different deal the companies made earlier in the year.
In April, Brooklyn announced that it had paid $1 million to acquire a license for Factor BioScience's and Novellus' mRNA gene editing and cell therapies technology. In the same announcement, Brooklyn said it extended its related license agreement with Factor and Novellus through May 21 of this year.
If the acquisition goes as planned, Brooklyn will no longer have the obligation to pay Novellus upfront fees, clinical development milestone fees and other royalties listed under the original agreement.
Leading up to Monday's news, Brooklyn announced earlier this month that it established a research and development center in Cambridge, Mass. and was co-locating with Factor BioScience and Novellus.
“We are delighted to advance our R&D efforts to commence translation of gene editing, cellular therapy and development for our emerging clinical programs with a focus on orphan diseases such as sickle cell anemia, familial amyloidosis and cell therapies for cancer,” said Howard J. Federoff, M.D., Ph.D., Brooklyn’s Chief Executive Officer and President. “Our new co-located R&D center is intended to provide us with ample infrastructure and synergistic potential to promote these goals.”