STEMCELL Technologies has completed two major acquisitions in early 2024, marking a significant expansion of Canada's largest biotechnology company into clinical applications and cell therapy delivery systems.
SQZ Biotechnologies Asset Acquisition
In February 2024, STEMCELL announced the acquisition of substantially all assets of SQZ Biotechnologies Company, a Massachusetts-based biotech company known for its mechanoporation technology. The transaction, approved by SQZ shareholders, represents a major milestone for the Canadian biotechnology sector.
"This exciting acquisition means that STEMCELL's own instruments will have the potential to be used in the delivery of cell therapies to cure diseases, like cancer," said Dr. Allen Eaves, President and CEO of STEMCELL. "This transaction is an important achievement for STEMCELL and a win for Canada's economy and life sciences sector as it will support the development of innovative cell therapies."
The acquisition includes SQZ's entire portfolio of over 400 patents and trademarks, other intellectual property including copyrights and trade secrets, proprietary equipment, and its head license with the Massachusetts Institute of Technology. SQZ's core technology involves mechanoporation—a method of introducing therapeutic cargo into cells by squeezing them rather than using traditional electroporation techniques.
STEMCELL had previously licensed rights to SQZ's patent portfolio in 2020 to develop and commercialize the CellPore™ Transfection System and associated CellPore™ Transfection Kits for research use. The new agreement expands STEMCELL's rights to commercialize these products across all markets, including clinical applications.
"Since our inception, SQZ's vision has been to transform patient outcomes by helping to make life-changing cell therapies widely and rapidly accessible, and we are confident that STEMCELL can drive this important ambition toward a global reality," said Dr. Howard Bernstein, Interim CEO of SQZ Biotechnologies.
Propagenix Acquisition Expands Regenerative Medicine Portfolio
Earlier in January 2024, STEMCELL completed its first acquisition in company history by purchasing Propagenix Inc., a Maryland-based biotechnology company focused on regenerative medicine technologies.
Founded in 2014, Propagenix developed and commercialized unique technologies, including its patented EpiX™ technology. STEMCELL had previously licensed rights to EpiX™ for research applications in 2017, but the acquisition now enables development of clinical applications.
"The acquisition of Propagenix is an important step in STEMCELL's growth journey and an achievement for Canada's biotechnology industry," said Dr. Eaves. "Propagenix's technology has the potential to contribute to big advancements in scientific research in both labs and clinical settings for the treatment of cancer, airway diseases, and other disorders."
The EpiX™ technology addresses clinical needs in replacing damaged barrier tissues, such as skin and intestinal tissue, with engineered tissue solutions. The acquisition includes all of Propagenix's assets and intellectual property portfolio, existing business arrangements, and an exclusive license to Conditional Reprogramming technology with Georgetown University.
Clinical Applications and Future Potential
Conditional Reprogramming technology allows scientists to grow tumors and healthy tissue in laboratory settings for research, with potential applications in regenerative medicine and drug screening for personalized medicine. This capability complements STEMCELL's existing research portfolio and expands its clinical development potential.
"We are delighted that the amazing team of scientists at STEMCELL will ensure Propagenix technologies and capabilities for epithelial cell biology are deployed to their fullest to serve the life science research community," said Dr. Brian Pollok on behalf of Propagenix co-founders.
The strategic acquisitions position STEMCELL to leverage its 30-year history in developing products for scientific research while expanding into clinical applications. "Over our 30-year history, STEMCELL has proudly developed the products required for scientific research around the world, and now with SQZ's technology and proprietary expertise, we are poised to increase our offering even further into the clinical space and ultimately help patients everywhere," said Dr. Eaves.
