BioLife Solutions Inc. (NASDAQ: BLFS) and Kite Pharma Inc. (NASDAQ: KITE) have entered into a supply agreement that stretches 10 years out. Although the companies didn’t disclose the financial details of the agreement, they said it involves the supply of CryoStor.
As such, over the 10-year period, BioLife Solutions Inc. (NASDAQ: BLFS) will be the source of CryoStor that Kite will use in the manufacturing process of its drug called KTE-C19. Kite’s KTE-C19 is a T-cell therapy targeting cancer treatment market. The drug candidate is currently in four clinical trials.
Vote of confidence
For BioLife Solutions Inc. (NASDAQ: BLFS), the agreement with Kite to supply CryoStor is a massive vote of confidence that could pave way for more potentially transformative supply deals. According to BioLife’s CEO, Mike Rice, his team is committed to supporting Kite through a combination of high quality products and great customer service. He further said that BioLife is looking forward to topline data from the first clinical trial of KTE-C19. The interim data readout is expected later this year.
Kite’s KTE-C19 has been cited as a potentially life-saving cancer therapy.
Commenting on the deal with BioLife Solutions Inc. (NASDAQ: BLFS), Kite’s VP of Product Sciences, Marc Better, said that it has taken them several years to qualify and adopt CryoStor in their clinical manufacturing process. As such, the latest long-term supply contract with BioLife is a culmination of rigorous process of qualifying CryoStor and it times at a time when Kite’s KTE-C19 continues to advance in clinical development stages.
For BioLife Solutions Inc. (NASDAQ: BLFS), the multiyear supply contract inked with Kite continues the stream of positive developments at the company. In May, BioLife inked a $4 million credit facility with WAVI Holding AG, which is its largest shareholder. The credit agreement calls for the investor to avail $4 million for BioLife with the funds being released in chunks of $1 million at four separate dates between June 2016 and March 2017.
1Q2016 financials for BioLife Solutions Inc. (NASDAQ: BLFS)
BioLife Solutions Inc. (NASDAQ: BLFS) generated revenue of $1.85 million from its biopreservation media product business. The topline figure increased 25% YoY.