MOLOGEN obtains order for the first cell and gene therapy center in Saudi Arabia and receives down payment
MOLOGEN has received an order for the turnkey implementation of a cell and gene therapy center in Riyadh, Saudi Arabia. A significant down payment was agreed upon and a partial payment has been received by MOLOGEN today. The order covers supply of equipment, essential materials, operating procedures and training of the employees. The order also incorporates an obligation of the customer to order two more centers from MOLOGEN within the next two years. For all three centers the volume of the order reaches about 9 m EUR.
MOLOGEN estimates an order volume of 2.5 to 3.6 m EUR for each center, depending on existing infrastructure. Further payments for the first center will be made according to progress of the project. The implementation will start after obtaining the preliminary permissions of the local authorities. The commissioning date of the first center is scheduled for December 2005.
After start of operations MOLOGEN will sell certain ingredients to the centers and receive royalties of 10% of revenues of the centers. According to the business plan each center should break even within six to nine months after start of operations and have a yearly sales potential of about 5 m EUR p.a.
The centers will be equipped with best available technology and operated with the necessary permissions of local authorities. They will be able to manufacture individual cell based therapeutics against severe cancers. For this purpose there will be established a close cooperation with local hospitals. It is expected that the centers will receive substantial public funding in their respective countries.
The order has been awarded by a consortium called INMOG. The consortium consists of Joharji International Development Company L.L.C. (JIDCO) contributing 75 %, MOLOGEN 15 % and Winner’s World Dubai FZ L.L.C. (WWD) 10 % of the capital required. INMOG shall be provided with capital of 2.5 m EUR before end of April 2005. MOLOGEN has contributed 240,000 EUR so far. The capital is initially held in trust by JIDCO. Subject to appropriate conditions, INMOG shall be transformed into an international Joint Venture in form of a Saudi Arabian limited liability company (L.L.C.).
MOLOGEN and INMOG have formed an exclusive commercial partnership for the implementation and marketing of cell and gene therapy centers. For this purpose INMOG has obtained from MOLOGEN an exclusive license for the Middle East for the production and the marketing of certain cell based tumor therapeutics, which will be developed by MOLOGEN.
INMOG shall not only operate cell and gene therapy centers with financial assistance of additional investors, but commercialize other technologies of MOLOGEN and other partners in the Arabian World.
MOLOGEN uses its proprietary DNA technologies to create and develop treatments for high-unmet-need illnesses. The main focuses are the unique and patented MIDGE and dSLIM technologies. Based on these platforms, MOLOGEN is developing DNA-based vaccines and therapeutics to prevent or cure a wide range of diseases.
Going public in 1998, MOLOGEN was one of the first German biotechnology companies to be floated on the stock exchange. The MOLOGEN shares are traded on the Geregelter Markt in Frankfurt.
Contact: Matthias Reichel
Phone: +49-30-84 17 88 - 0
Fax: +49-30-84 17 88 - 50
e-mail: [email protected]