ProMetic Achieves Pivotal Milestone for Its Plasma-Derived Therapeutics Business
News Feb 09, 2011
ProMetic Life Sciences Inc. has announced that the Company has achieved a pivotal milestone for the in-house manufacturing of plasma-derived proteins at commercial scale thereby expanding its reach into the lucrative plasma-derived therapeutics industry.
ProMetic, via its new subsidiary, NewCo, has entered into a long-term lease on very favorable conditions with Quebec's Institut national de la recherche scientifique ("INRS") for an existing facility.
NewCo will undertake the development and manufacturing of high-value plasma-derived therapeutic biosimilars for ProMetic's current and future clients. This facility, located in Laval's biotech cluster, will have a targeted processing capacity of 150,000 liters which would supply products with a market value exceeding $100,000,000 CDN per annum.
NewCo will be funded via third-party investments and is anticipated NewCo will rapidly become self-sustaining through end product services and sales to ProMetic's existing clients. An initial $750,000 CDN investment has been received as part of a $2,500,000 CDN commitment.
This new business venture has also received pledges for additional funding from various institutions and key stakeholders involved in ProMetic's protein technologies activities which could amount to additional financial contributions of $3,500,000 CDN.
"This is a key development for ProMetic as it enables the Company to benefit, at commercial scale, from the competitive advantage provided by our proven Plasma Protein Purification System ("PPPS™") as well as our prion capture technologies. Our clients will have access to ProMetic's in-house production of plasma-derived products, in addition to technology transfer and skills training services," said Mr. Pierre Laurin, ProMetic's President and Chief Executive Officer.
Mr. Bruce Pritchard, ProMetic's Chief Financial Officer stated: "We are very pleased to have accessed such a high quality facility on such very favorable terms, as well as having attracted capital to catalyze this exciting venture. The manufacturing plant will supply plasma-derived therapeutic products to our existing and future clients which should generate significant revenue". Mr. Pritchard added: "The plant is expected to start up operations by the end of 2011, provide cGMP products to be used by clients in early 2012, and reach full operating capacity by 2014".
ProMetic will further reduce its overhead cost by relocating its headquarters at this new facility, at the end of March, 2011. This also allows ProMetic to concentrate its core activities near its existing Therapeutic division's research and development site.