Shares of Cellular Biomedicine Group (CBMG) have resumed pre-market activity after a brief halt following the company’s announcement Thursday that it has entered into a strategic licensing and collaboration agreement with Novartis (NVS) to manufacture and supply the CAR-T cell therapy Kymriah in China.
Novartis will be the the exclusive holder of the marketing license.
Under the terms of the agreement, Cellular Biomedicine will receive $40 million in an equity purchase from Novartis at $27.43 per share for approximately 9% equity in Novartis. Novartis will receive certain royalty-free intellectual property worldwide rights to certain Cellular’s CAR-T related technology.
Cellular will also receive a single-digit escalating percentage collaboration payment based on net product sales and a mark-up from Novartis on the manufacturing cost.
Cellular will take the lead in the manufacturing process, and Novartis will lead distribution, regulatory and commercialization efforts in China.