IBio (NYSEMKT:IBIO) jumps 10% premarket after entering into a Master Services Agreement with Boston-based Safi Biosolutions to evaluate its FastPharming System for the expression of key proteins to be used in the bioprocessing of Safi blood cell therapy products.
The company plans to generate cGMP growth factors and cytokines using its FastPharming System.
Pursuant to the agreement, iBio will manufacture ten proteins to be evaluated in the production of Safi’s cell therapies as part of the first Statement of Work.
Safi will have the option to designate certain proteins as proprietary to their bioprocess, but iBio will have the right to commercialize all other products.
Additionally, iBio has agreed to invest $1.5M in Safi in the form of a convertible promissory note. The Note, having a maturity date of three years will bear interest at a rate of 5% per annum and will be fully convertible into common shares of Safi, at the option of iBio.
“Safi Biosolutions believes iBio’s plant-based expression system has the potential to provide both quality improvement and cost reduction for many of the important cytokines and media used in our cell culture and growth process,” commented Doug McConnell, co-founder and CEO of Safi Biosolutions.