On January 12, 2022 Athenex, Inc., (NASDAQ: ATNX), a global biopharmaceutical company dedicated to the discovery, development, and commercialization of novel therapies for the treatment of cancer and related conditions, reported that it has entered into a definitive agreement for ImmunityBio, Inc. (NASDAQ: IBRX) to assume its leasehold interest in a manufacturing facility in Dunkirk, New York, and certain related assets for approximately $38 million, subject to adjustment at closing. Proceeds from the sale will be used to service the Company’s debt obligations and for other general corporate purposes (Press release, Athenex, JAN 12, 2022, View Source [SID1234598623]). The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2022.
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Upon the closing, ImmunityBio will assume all capital expenditure and hiring obligations of Athenex pursuant to its agreements with New York State. Athenex will continue to operate its existing Athenex Pharmaceutical Division (APD) and Athenex Pharmaceutical Solutions (APS) divisions. Athenex has not assigned any of its rights to its corporate headquarters in Buffalo, New York and will retain all of its rights and obligations with respect to its corporate headquarters. ImmunityBio has entered into a preliminary agreement with Athenex to allow APS the ability to manufacture its 503B products at the Dunkirk facility and the parties plan to enter into a definitive preferred contract manufacturing agreement.
Jeffrey Yordon, Chief Operating Officer, President Athenex Pharmaceutical Division, said, "We are pleased to announce this agreement regarding the Dunkirk facility, which we believe will allow us to execute on our strategy and create value for the specialty pharmacy division of Athenex. We look forward to continuing our strong relationship with the Dunkirk team as a contract manufacturing partner. We believe this transaction is aligned with Athenex’s commitment to unlock value for its shareholders and will put Athenex in a better financial position to deliver on its goals in the upcoming year."
Patrick Soon-Shiong, M.D., Executive Chairman of the Board of ImmunityBio commented, "We are pleased to expand our global manufacturing capacity of biologics and vaccines with the addition of this state-of-the-art facility to our ecosystem of manufacturing facilities. The Dunkirk facility will establish a global pandemic preparedness manufacturing plant for novel vaccines and immunotherapy products. We are looking forward to working with the Dunkirk community and State of New York to make western New York a global biotech manufacturing center."