Cellular Biomedicine Group Inc. (CBMG) has entered into a strategic licensing and collaboration agreement with Novartis to manufacture and supply the CAR-T cell therapy Kymriah (tisagenlecleucel) in China. Novartis will be the exclusive holder of the marketing license.

Upon the closing of the licensing and collaboration agreement, CBMG will receive $40 million in an equity purchase from Novartis at $27.43/share for approximately 9 per cent equity. Novartis will receive certain royalty-free intellectual property worldwide rights to certain CBMG CAR-T related technology.

CBMG will receive a single-digit escalating percentage collaboration payment based on net product sales. CBMG will receive a mark-up from Novartis on the manufacturing cost. CBMG will take the lead in the manufacturing process, and Novartis will lead distribution, regulatory and commercialization efforts in China.