Catalent Pharma Solutions has completed the acquisition of Bone Therapeutics’ manufacturing subsidiary, Skeletal Cell Therapy Support SA (SCTS), announced on 29 October 2020. Following completion of the transaction, SCTS’ manufacturing infrastructure and production operating teams have now become part of Catalent’s Cell & Gene Therapy division.

Under the terms of the transaction, Catalent acquires Bone Therapeutics’ cell therapy manufacturing subsidiary, SCTS, for gross proceeds of €12 million. The equity purchase price, net of SCTS’s debt (€3 million), cash adjustments, and taking into account the restructuring of some Bone Therapeutics’ existing liabilities (€3 million), generates net proceeds of approximately €6 million.

Concurrently, Bone Therapeutics and Catalent entered into associated supply agreements. Under these agreements, the acquired manufacturing entity will continue to service the production of ALLOB, Bone Therapeutics’ allogeneic cell therapy product, for Bone Therapeutics and its partners. This will grant Bone Therapeutics access to Catalent’s global network of clinical and commercial manufacturing facilities and will ensure ongoing optimisation, sustainability and a global reach for the production of ALLOB, as the product heads through clinical development and anticipated commercialisation. The transaction excludes any IP rights, thus Bone Therapeutics will retain the know-how and ability to tech transfer ALLOB production.

These supply agreements with Catalent will streamline and economise ALLOB’s production and is estimated to result in a €2 million annual reduction of fixed costs. The partnership will enable Bone Therapeutics to focus its strategy on the development of products from its differentiated MSC (Mesenchymal Stromal Cell) platform of cell and gene therapeutic targets for orthopaedics and other indications. Based on current developments and recently signed agreements, Bone Therapeutics has decided to terminate the remaining convertible bond programs issued in March 2018 and April 2020.