Leuven (BELGIUM) – June 19, 2009 – TiGenix (NYSE EURONEXT: TIG) announces the decision to set up a new cell expansion facility in Europe for the commercial production of its cell based products on the Chemelot Campus in Sittard-Geleen, the Netherlands. The financing for the facility has been secured through a private placement.
After carefully evaluating a number of options throughout Europe, taking into consideration technical, logistical, regulatory and financial criteria, TiGenix has selected a building on the Chemelot Campus, near to Maastricht, the Netherlands, to locate its new cell expansion facility. The site is centrally located in TiGenix’ key European markets, in a region that is strong in distribution and (bio)logistics and that is highly committed to develop as a transnational knowledge centre in life sciences and regenerative medicine.
TiGenix has also secured the necessary financing to fund the set-up of the GMP manufacturing facility through a private placement for a total amount of EUR 5,4 million. The investment agreement was subscribed by NV Industriebank LIOF, Particon BV, Limburg Ventures BV and LRM NV. TiGenix has agreed to issue new shares at a minimum price of EUR 5 per share. The new investors are committed to support the company in its growth strategy and its presence in the broader region. They agreed on a lock-up period until June 30, 2010, which could be lifted in certain circumstances. The lock-up will be released gradually.
The capital increase is conditional upon the signing of a long term lease agreement for the building, which is expected to take place in the coming weeks.
Gil Beyen, CEO of TiGenix comments: “The expansion of our European cell production capacity is an important step in realising our growth strategy. We are very pleased with the support we obtained from the new investors to secure the required funds and look forward to be part of the cross-border ‘Life Sciences Triangle’ of Eindhoven, Leuven and Aachen.”
The special reports which will be drafted by the Board of Directors and the statutory auditor pursuant to the articles 596 and 598 of the Company Code will, upon availability, be published on the website of TiGenix (www.tigenix.com).
About TiGenix
Based in Leuven, Belgium, TiGenix NV (NYSE Euronext: TIG) is a late-stage biomedical company that focuses on innovative local treatments for damaged and osteoarthritic joints. The Company is exploiting the power of regenerative medicine to develop durable treatments, validated through controlled clinical trials, for these indications. TiGenix is developing a portfolio of products that address specific musculoskeletal problems. The lead indication among these is cartilage damage, which is a debilitating affliction affecting the mobility and functioning of patients. Western societies are characterised by ageing populations that place an increasing emphasis on high quality of life and life-long mobility, and, as such, cartilage problems represent a large and growing unmet medical need. Current therapies do not provide satisfying, long-term durable repair and TiGenix therefore believes there is a need for more effective treatments for cartilage damage.
About ChondroCelect
ChondroCelect® is the lead product for TiGenix that is in late stage development for applications in cartilage repair. ChondroCelect consists of characterised cultured chondrocytes derived from the patient’s own cartilage and is used for autologous chondrocyte implantation (ACI), a surgical procedure to treat cartilage defects. Cartilage defects of the knee are very common, and the spontaneous healing capacity of cartilage is limited. The objective of the ChondroCelect technology is to facilitate the regeneration of hyaline-like cartilage that more closely approximates the structure of healthy normal cartilage. TiGenix has successfully completed a randomised Phase III clinical trial comparing ChondroCelect to the present standard-of-care surgical intervention called microfracture. The results of this study have formed the basis of a submission in the EU for regulatory approval which will be followed by a submission in the U.S. The results of this pivotal clinical trial have also been published in the February 2008 issue of the American Journal of Sports Medicine.
About NV Industriebank LIOF
NV Industriebank LIOF, the Limburg Development and Investment Company, aims at strengthening the economic base of the province of Limburg. LIOF targets industry and the dynamic service sector.
Among the core activities are Acquisition, Participation and Development/Innovation, as these relate to the location/relocation of (foreign) companies, venture capital participation in Limburg companies with prospects, the development/implementation of programs and projects to sharpen the competitive edge of Limburg business.
LIOF has a strategic approach which targets opportunities for long-term economic development e.g. in Healthcare and Life Sciences. In this it has a bridging role between government and business. LIOF is an ambitious professional organization and speaks the language that business understands.
About Particon BV
Particon B.V. is a wholly owned subsidiary of Stichting De Weijerhorst based in Maastricht. The objective is to preserve and promote competitive industrial and trading activities in The Netherlands, -especially in Limburg- including the concurrent employment which stems from these activities.
About Limburg Ventures BV
Limburg Ventures is a regional venture capital provider, founded in 2004 by DSM and Limburg Development Company LIOF. As a venture capital fund it invests in promising start-up companies active in the biomedical sector and in advanced materials. The fund is focused on companies setting up business in Limburg, preferably on and around the Chemelot Campus, to the north of Maastricht. Tigenix is Limburg Ventures’ eleventh investment.
About LRM NV
LRM is a profit-driven investment company that offers entrepreneurs a unique combination of risk capital and real estate. LRM generalises, but has accrued specific competencies in ICT, Life Sciences and Clean Tech. LRM's activities boost economic development and general employment opportunities in the province of Limburg. They are available to all sectors and companies, from starters and growing SMEs to major companies.
LRM mainly invests in companies in the following five business areas: ICT & Media, Life Sciences, Clean Tech & Energy, SME and Large Companies.
About Chemelot
In the field of material sciences and life sciences the chemical industrial site Chemelot, in Geleen in the South of the Netherlands, is an important business partner in Western Europe. Chemelot comprises the Industrial Park and the Campus. The location has an excellent infrastructure and perfect logistics via water, rail and road. Chemelot offers raw materials, utilities, facilities, and an innovative campus. With these, Chemelot facilitates new investments in research activities as well as innovative start-up companies and chemical installations. Some of the firms on Chemelot rank high on the list in their business worldwide. The firms on Chemelot profit from operational synergy. However, Chemelot is more than the sum of these parts. Chemelot is also a ‘chemical innovation community’ where people, companies, and educational institutions share knowledge and involve in a creative cooperation to realize innovations and accelerated business growth.
About Life Sciences Triangle
The ‘Life Sciences Triangle’ is a cross-border Dutch, German and Belgian initiative to further develop the region’s many industrial, academic and commercial resources in this field. The region is already home to leading medical and life sciences companies, and boasts five universities, four university teaching hospitals, and many eminent research institutes
Forward-looking information
This document contains forward-looking statements and estimates with respect to the anticipated future performance of TiGenix and the market in which it operates. Certain of these statements, forecasts and estimates can be recognised by the use of words such as, without limitation, “believes”, “anticipates”, “expects”, “intends”, “plans”, “seeks”, “estimates”, “may”, “will” and “continue” and similar expressions. They include all matters that are not historical facts. Such statements, forecasts and estimates are based on various assumptions and assessments of known and unknown risks, uncertainties and other factors, which were deemed reasonable when made but may or may not prove to be correct. Actual events are difficult to predict and may depend upon factors that are beyond the Company's control. Therefore, actual results, the financial condition, performance or achievements of TiGenix, or industry results, may turn out to be materially different from any future results, performance or achievements expressed or implied by such statements, forecasts and estimates. Given these uncertainties, no representations are made as to the accuracy or fairness of such forward-looking statements, forecasts and estimates. Furthermore, forward-looking statements, forecasts and estimates only speak as of the date of the publication of this document. TiGenix disclaims any obligation to update any such forward-looking statement, forecast or estimates to reflect any change in the Company’s expectations with regard thereto, or any change in events, conditions or circumstances on which any such statement, forecast or estimate is based, except to the extent required by Belgian law.