Celularity announces closing of transaction with NexGel

Celularity (CELU) announced the closing of its previously announced transaction with NexGel, pursuant to which NexGel acquired certain commercial and other assets related to Celularity’s biomaterials product portfolio and received an exclusive license to develop and commercialize specified products. The transaction is intended to monetize Celularity’s biomaterials portfolio while enabling it to further concentrate resources on advancing its longevity-focused therapeutic pipeline and scalable manufacturing platform. Under the terms of the transaction, Celularity received aggregate consideration of $13.3 million, consisting of $8.3 million in cash at closing and a $5.0 million convertible promissory note from NexGel. In addition, Celularity remains eligible to receive up to $20.0 million in future milestone payments based on net sales thresholds, and royalties on net sales of certain development-stage products, in each case subject to the terms of the transaction documents. The transaction also enabled Celularity to retire nearly $13.0 million of debt, strengthening Celularity’s balance sheet and capital position while preserving future economic participation in certain licensed development-stage programs.