LONDON (Alliance News) - 4D pharma PLC on Friday said it has acquired the production assets of its partner, Instituto Biomar SA, after recognising the assets would allow the company to progress its research programmes from the laboratory stage through to clinical development.
4D has been working with Biomar on several development projects borne from the London-listed company's MicroRx platform, a proprietary platform for discovering novel live biotherapeutics and developing its pipeline.
"The facilities and experience of the team at Biomar have the capability to translate research programmes from our laboratories through clinical development to support initial production requirements. The work to date has shown the flexibility of the facility and the team at Biomar and, with the potential to expand the facility further, 4D made the decision to acquire Biomar's production assets," said the company in a statement.
4D conceded that there is a lack of pharmaceutical grade facilities capable of producing live biotherapeutics at both clinical and production scale, which is becoming an increasing problem as the company's live biotherapeutics continue their rapid development.
The company added that it has experienced a number of constraints, both in terms of size of the facilities and the availability of those facilities, in working with contract research organisations, prompting it to acquire its own facilities from Biomar.
"4D believed working solely with third party providers was no longer optimal given the number of programmes within the 4D pipeline and the current speed of development," said 4D.
4D has set up a new Spanish subsidiary to facilitate the deal, whereby it will acquire the relevant assets from Biomar and the lease covering Biomar's premises in Leon in north-west Spain. As a result, around 13 staff members of Biomar will move over to 4D.
4D said it envisages hiring a further five members of staff over the next six months following the deal.
In return, 4D will pay EUR3.0 million on completion. Of that consideration, EUR2.0 million will be paid in cash with the other EUR1.0 million being paid through the issue of 82,349 4D shares at a price of 980.50 pence each.
Those shares represent around 0.12% of the company's enlarged issued share capital.
Another EUR3.0 million will be paid once certain production milestones are met, it said.
4D shares were trading down 3.1% to 945.0 pence per share on Friday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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