TiGenix completes the sale of its Dutch manufacturing facility to PharmaCell

Regulated information 2 June, 2014

TiGenix completes the sale of its Dutch manufacturing facility to PharmaCell

TiGenix to receive a total consideration of Euro 5.75 million

PharmaCell will continue to manufacture ChondroCelect, which Sobi will market and distribute

TiGenix to focus on bringing its development pipeline to patients

Leuven, Belgium - 2 June, 2014 - TiGenix NV (Euronext Brussels: TIG), the European leader in cell therapy, announced today that it has completed the sale of its Dutch production facility to PharmaCell BV for a total consideration of Euro 5.75 million. PharmaCell, a leading European contract manufacturing organisation active in the areas of cell therapy and regenerative medicine, has acquired the shares of TiGenix' wholly-owned subsidiary,TiGenix BV, which holds the Dutch manufacturing facility.

The TiGenix state-of-the-art manufacturing facility is located in Sittard Geleen in the Netherlands. In 2012, the site passed a cGMP (current Good Manufacturing Practice) inspection by the Dutch authorities, and obtained approval from the European Medicines Agency for the production of ChondroCelect, the company's cell therapy product for cartilage repair in the knee.

TiGenix has received an upfront payment of Euro 3.5 million, and will receive a final payment of Euro 0.75 million in 2017. ChondroCelect will continue to be manufactured at the facility under a long-term manufacturing agreement, under the terms of which TiGenix will benefit from a cost relief of Euro 1.5 million during the first three years, the largest portion of which comes in the first year.

"The sale of the Dutch manufacturing facility together with the agreement to license the marketing and distribution rights of ChondroCelect to Sobi, which was signed in April, have transformed TiGenix," said Eduardo Bravo, CEO of TiGenix. "The combination of these two deals brings an immediate cash inflow of Euro 3.5 million to TiGenix, and a reduction in annual opeRating costs for manufacturing, sales and marketing of at least Euro 5 million. The broader geographical reach for ChondroCelect offered by Sobi will give TiGenix the potential for greater value generation in the long-term. TiGenix itself can now fully focus on progressing its promising advanced clinical stage pipeline to patients with high unmet medical need."

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TiGenix completes the sale of its Dutch manufacturing facility to PharmaCell