- In an 8-K filed today, Lion Biotechnology (LBIO -3.4%) reports that it entered into a three-year Manufacturing Services Agreement with WuXi AppTec on November 23 to provide manufacturing and other services related to Lion's autologous cell therapy products. The new contract will govern certain work orders placed under the companies' prior agreement inked dated September 25, 2015.
- The agreement covers two statements of work. Under the first, Lion will pay WuXi $2.5M for the use of one manufacturing suite, including personnel, during the next year. Under the second, WuXi will establish and operate a second dedicated facility for a late-stage/commercial manufacturing cGMP suite and Lion will transfer its current tumor infiltrating lymphocyte manufacturing process to the dedicated cGMP suite. Lion will pay WuXi $5.85M in this case.
- Both firms may cancel the agreement with sufficient notice to the other party.