Mesoblast Ltd Enters Into Strategic Alliance With Lonza Group

Mesoblast Ltd announced that the Company and Lonza Group (SWS: LONN have entered into a strategic alliance for clinical and long-term commercial production of Mesoblast’s off-the-shelf (allogeneic) adult stem cell products. Under the agreement: Lonza will supply Mesoblast’s clinical and long-term commercial MPC product needs globally; Mesoblast can trigger a process requiring Lonza to construct a purpose-built manufacturing facility exclusively for Mesoblast’s marketed products. In return, Mesoblast will purchase agreed quantities of marketed products from the facility; Mesoblast can exercise its right to buy out this manufacturing facility at a pre-agreed purchase price two years after the facility receives regulatory approval; Mesoblast will have exclusive access to Lonza's Cell Therapy facilities in Singapore for the manufacture of allogeneic cell therapy products, subject to certain exceptions; and Lonza will utilize its intellectual property to facilitate reductions in Mesoblast's manufacturing costs and help enable development of enhanced second generation products.