Date: 2011-10-17
Type of information: Production agreement
Compound:
Company: Angel Biotechnology (UK) Materia Medica Holding (Russia)
Therapeutic area:
Type agreement: joint-venture manufacturing production
Action mechanism:
Disease:
Details: The biopharmaceutical contract manufacturer Angel Biotechnology Holdings has agreed with the Russian pharmaceutical company Materia Medica Holding (MMH) to form a joint venture company 51% owned by MMH and 49% owned by Angel. The purpose of the joint venture is to commission new product programmes and to manage their production in a dedicated GMP unit operated by Angel, on behalf of MMH. Under the proposed joint venture, Angel will increase the size of the GMP facility at Cramlington that the Company is currently re-commissioning, in order to customise a new dedicated area that will be allocated to the joint venture for manufacture of MMH products. This increase allows the expansion of Angel\'s core business to continue as planned. MMH will fund the cost of this work and provide, through the joint venture, funding for capital equipment required for the manufacturing activities. The joint venture will retain title to the capital equipment. It will also occupy a non-GMP development laboratory where the preliminary work required before a programme enters the GMP unit will be carried out. Under the terms of the proposed joint venture, the dedicated facility will be managed, operated and staffed by Angel, supported by Angel\'s infrastructure, and covered by Angel\'s licences. The joint venture will place orders, prioritise and manage the work carried out in the dedicated unit, paying fees to Angel for its use of the facility, staff and infrastructure, and associated overheads. MMH will provide the joint venture with funds required to commission new programmes and the joint venture will supply finished product to MMH. Profits retained in the JVC will be divided between Angel and MMH in proportion to their shareholdings. The arrangement will be reviewed after five years and it is understood that MMH will require a minimum of seven products to be manufactured in the first three to five years. Work will begin immediately to negotiate the agreements required to conclude a deal. There is no guarantee that a deal will be finalised and that the outline set out above will not change. In the meantime, MMH has indicated that it intends to commission the first three programmes under the terms of our current umbrella agreement, pending formation of the JVC after which these will transfer into the control of the JVC.
Financial terms:
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