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Genezen acquires uniQure's gene therapy operations

EditorAhmed Abdulazez Abdulkadir
Published 07/01/2024, 11:17 AM
QURE
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BOSTON - Genezen, a gene therapy contract development and manufacturing organization (CDMO), has entered into an agreement to acquire uniQure (NASDAQ:QURE)'s commercial gene therapy operations located in Lexington, MA. This strategic move will allow Genezen to offer late-phase and commercial gene therapy development and manufacturing services globally.

The acquisition includes a state-of-the-art, commercially-licensed viral vector facility and a team of experts, strengthening Genezen's capabilities in supporting customers from early development through commercial manufacturing. The Lexington site will also serve as Genezen's global AAV center of excellence.

Steve Favaloro, President and CEO of Genezen, expressed excitement about the acquisition, emphasizing the enhanced scale and capabilities it brings to the company's mission. Genezen aims to advance cell and gene therapies by providing high-quality development and manufacturing solutions.

uniQure's CEO, Matt Kapusta, acknowledged Genezen as a suitable partner to continue the growth of the Lexington facility and team. uniQure, a pioneer in gene therapy manufacturing, will maintain access to the facility's capabilities through strategic supply agreements.

Genezen will also take on commercial supply responsibilities for HEMGENIX®, a gene therapy product for Hemophilia B, from CSL (OTC:CSLLY) Behring Operations. Mike Deem, Head of CSL Behring Operations, expressed enthusiasm for the expanded relationship with Genezen and the continued optimization of the manufacturing process to ensure reliable patient supply.

The transaction is supported by additional growth equity from Ampersand Capital Partners, which will help Genezen grow its multi-site operations and execute its long-term strategy.

Genezen has a decade of experience in the gene and cell therapy market and is known for supplying retroviral and lentiviral vectors, as well as AAV. The company's science-first approach has led to investments in scalable manufacturing processes and technologies.

The acquisition is based on a press release statement and positions Genezen to extend its support to more customers, advancing novel therapies for patients worldwide.

In other recent news, uniQure N.V. has seen several significant developments. Shareholders have approved an expansion of the company's share incentive plan, reappointment of board members, and the adoption of the 2023 statutory annual accounts. Additionally, the company's gene therapy candidate, AMT-130, was granted an RMAT designation by the U.S.

In other board-related news, non-executive directors Rachelle Jacques and David Meek were re-elected to continue their tenure until the 2027 annual general meeting. However, another non-executive director, Paula Soteropoulos, has chosen not to stand for re-election at the next annual meeting. The company stated that her decision is not due to any disagreements with uniQure's management, operations, or practices.

InvestingPro Insights

The acquisition of uniQure's commercial gene therapy operations by Genezen highlights the strategic moves within the gene therapy sector. As Genezen broadens its capabilities, it's worth noting the financial health and market sentiment surrounding uniQure, the company whose assets are being acquired. According to InvestingPro data, uniQure has a market capitalization of $217.5 million. This valuation comes at a time when the company is trading near its 52-week low, which could indicate a potential undervaluation or reflect underlying challenges the company faces.

Analyzing uniQure's financial metrics further, we see that the company has a negative price-to-earnings (P/E) ratio over the last twelve months as of Q1 2024, suggesting that it has not been profitable during this period. The negative gross profit margin of -952.89% during the same timeframe also underscores the financial challenges uniQure has been dealing with, including a significant revenue decline of -82.73%. However, it's important to recognize that uniQure's liquid assets exceed its short-term obligations, which indicates a level of financial stability in terms of liquidity.

InvestingPro Tips for uniQure suggest that analysts do not expect the company to be profitable this year, and there has been a downward revision of earnings estimates for the upcoming period by five analysts. These factors may have influenced Genezen's acquisition decision, as they could represent an opportunity to acquire valuable assets at a lower cost and integrate them into their growing operations. For investors interested in delving deeper into the financial health and future prospects of uniQure, there are additional InvestingPro Tips available, which can be accessed with the use of coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are six more tips listed in InvestingPro for uniQure that could provide further insights into the company's performance and outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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