Orgenesis receives €2.015 million grant to develop potential cure for Type 1 Diabetes

Nov 26 2014

Orgenesis SPRL, a subsidiary of Orgenesis Inc. (OTCQB: ORGS), a leader in the emerging fields of cellular therapy and regenerative medicine, today announced that it has received the formal approval from the Walloon Region, Belgium (Service Public of Wallonia, DG06) for a €2.015 million support program for the research and development of a potential cure for Type 1 Diabetes.

The Financial support is composed of a 1,085,000 euros (70% of budgeted costs) grant for the industrial research part of the research program and a further recoverable advance of 930,000 euros (60% of budgeted costs) of the experimental development part of the research program. The grants will be paid to Orgenesis over a period of approximately 3 years. The grants are subject to certain conditions respecting our conducting the work in the Walloon Region, our own investment in these projects and certain other conditions.

“We are extremely appreciative of the Walloon Region’s willingness to support the Orgenesis European activity with this grant,” said Vered Caplan, Chairperson and CEO of Orgenesis. “This approval, once more justifies the decision by Orgenesis to set up our development and manufacturing activity in the Walloon Region. This location has become a central hub for cell therapy in Europe, where we have found advanced development and manufacturing partnerships and service providers, such as Pall Corporation, through its recently purchased subsidiary ATMI, and MaSTherCell, a contract developer specializing in cell therapy products, and industrial and financial support by the Wallonian Minister of the Innovation and Research.”

Orgenesis is pioneering work in developing technology to successfully reprogram human liver cells into glucose-responsive, fully functional Insulin Producing Cells (IPCs). The objective of the European program is to continue the development of a cGMP (Current Good Manufacturing Practice) and implement it on a high-efficiency industrial scale, which will enable Orgenesis to obtain functional Insulin Producing Cells (IPC) in large quantities from the livers of patients suffering from Type 1 Diabetes.

“Orgenesis has demonstrated tremendous innovation in its research and development efforts to date,” said Michel Charlier, DGO6 General Inspector. “Their therapies hold great promise in how Type 1 Diabetes will be treated around the world. Orgenesis represents the type of innovative company we seek to support and foster in the Walloon Region.”