Massachussets-based biotech Agenus is launching a fee-for-service biologics manufacturing business as part of a strategic operational realignment.
The company will transition its Biologics CMC capabilities to generate revenue while supporting its focus on advancing immunotherapies. The launch of the company's biologics CDMO business leverages two of its California manufacturing sites: a Berkeley facility and a 66-acre biomanufacturing-zoned property in Vacaville.
To support this move, Agenus secured a $22 million non-amortizing mortgage backed by these assets. The transaction, facilitated by L&L Capital, netted $20 million after closing costs and an interest reserve. The mortgage carries a two-year term with interest rates of 12% in the first year and 13% in the second, payable in a 50-50 mix of cash and common stock.
This move aligns with Agenus’ focus on developing botensilimab/balstilimab (BOT/BAL), a promising therapy for microsatellite-stable (MSS) colorectal cancer. The company projects a 60% reduction in annual external expenditures and expects to lower its fiscal year 2025 cash burn to $100 million.