ThermoGenesis currently provides cell processing tools and services to the cell and gene therapy industry and announced that it would add to its offerings by creating a cell therapy manufacturing division. The new division will be called TG Biosynthesis and will provide contract development and manufacturing organization (CDMO) services.
To create the CDMO, ThermoGenesis entered into a license and technology access agreement with Boyalife Genomics, a China-based CDMO. The deal provides the former company with a US license to “certain existing and future know-how and other intellectual property” relating to cell manufacturing and related processes.
As part of the agreement, ThermoGenesis will pay Boyalife Genomics a running royalty of 7.5% of annual net sales of products and services that are covered by the US patents, and a royalty of 5% of other products and services covered by other licensed intellectual properties.
According to the CEO of ThermoGenesis, Chris Xu, “We plan to leverage our unique and proprietary automated and semi-automated cell processing technologies, including the CAR-TXpress platform, to expand from a device company to one focused on providing world-class CDMO services.”
The company had previously stated that its automated platforms could reduce the cost of some CAR-T therapies by as much as five times. ThermoGenesis also noted that due to the automated processes, the construction and maintenance of CAR-T manufacturing facilities can be simplified.
Building out manufacturing infrastructure
At the same time as announcing the decision to launch CDMO services, ThermoGenesis revealed that it had leased 35,475-square-feet of laboratory and office space in Sacramento, US. With the location secured, the company plans to create a current good manufacturing practice (cGMP) facility with 12 cGMP clean room suites.
The Greater Sacramento Economic Council, which is working with ThermoGenesis, alongside the City of Rancho Cordova, in the establishment of the facility, stated that the development will create more than 100 jobs in the area.
Further than this, the partners noted that they expect the facility to generate more than $500m (€447m) in new revenue over the next 10 years.
On announcing the new facility, ThermoGenesis suggested that the facility will be opened with the goal of quadrupling production efficiency and cutting the cost of cell and gene therapies in half – based upon the utilisation of automated and semi-automated processes.