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4D pharma acquires Biomar production assets

08 April 2016 07:38

4D pharma, a pharmaceutical company focusing on the development of live biotherapeutics, has acquired the production assets of Instituto Biomar, a Spanish based contract research organisation specialising in microbial fermentation.

4D says it has recognised that as its live biotherapeutics continue their rapid development, and more programmes move towards the clinic, there is a lack of pharmaceutical grade facilities capable of producing live biotherapeutics at both clinical and production scale.

In addition, 4D has encountered a number of constraints, both in terms of size of the facilities and the availability of those facilities, in working with contract research organisations. 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.

Biomar, based in Leon in north-west Spain, has been working as an outsourced development partner since 2014.

Formed in 1996, Biomar had initially focused on research into marine microorganisms and their use in pharmaceutical, bio-energy and food production. In 2001 it began to expand its technologies into microbial fermentation, providing contract services in this field and expanding its production capabilities up to 3,000 litres in 2010.

4D has been working with Biomar on several development projects generated by the MicroRx platform, as well as providing a secondary or back up facility for both the Thetanix and Blautix programmes. 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.

The transaction will see 4D Pharma León, SLU, a newly incorporated Spanish subsidiary, acquire the relevant business assets from Biomar, and take a lease at Biomar's León premises. Of the current Biomar staff, 13 will move over to 4D León as part of the transaction, with the expectation that a further five staff will be recruited over the next six months.

The consideration for the acquisition is EUR3 million which is payable on completion - EUR2 million in cash and the remainder being satisfied througn the issue of 82,349 4D shares at a price of GBP9.805 apiece.

In addition, a further EUR3 million will become payable in cash dependent upon GMP certification in respect of the production of live biotherapeutics at the León premises.

Story provided by StockMarketWire.com

Related Company: DDDD

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