Under the agreement, Mesoblast can instruct Basel, Switzerland-based Lonza to build a dedicated manufacturing plant for its products in exchange for buying “agreed quantities” of those items, the companies said in a joint statement today.
Mesoblast’s experimental spinal and heart failure treatments are in the final of three stages of patient studies usually required by regulators. The Melbourne-based company has more than tripled over the past 12 months, making it the best performing stock on Australia’s S&P/ASX 200 Index. Lonza is the world’s biggest maker of drug ingredients and also offers contract manufacturing for pharmaceutical companies.
“It means that we as a company have taken out the entire risk of the manufacturing by shifting it” to Lonza, Mesoblast Chief Executive Officer Silviu Itescu said in an interview. The alliance would guarantee long-term supply of its products, according to the statement.
Mesoblast gained as much as 5.3 percent on the Australian Stock Exchange today. The stock traded at 4.5 percent higher at A$7.94 at 10:31 a.m. Sydney time.
Lonza is planning a secondary listing on the Singapore Stock Exchange in the fourth quarter of 2011, the Swiss company said on Sept. 16.
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