Tevogen Bio has entered into a formal agreement with CD8 Technology Services LLC to develop and/or acquire a turn-key facility that will support both in-house pre-clinical research and GMP cell therapy production capabilities. The agreement, announced on April 17, 2025, represents a significant milestone in Tevogen's infrastructure expansion strategy to advance its pipeline of off-the-shelf, genetically unmodified CD8+ T cell therapeutics.
The Warren, N.J.-based company, which trades on Nasdaq under the ticker TVGN, will provide the primary staff and operations for the facility. This strategic move is designed to accelerate development timelines, maintain operational agility, and control costs—key factors in the competitive cell therapy landscape.
"This milestone represents a significant step forward in Tevogen Bio's infrastructure expansion to support the advancement of its pipeline," commented Ryan Saadi, MD, MPH, Founder and CEO of Tevogen Bio. "In addition, as we continue executing our mission to help patients, we're also exploring additional ways to recognize our real, long-term shareholders."
Strategic Financing Supports Facility Development
The facility agreement formalizes a previously announced letter of intent signed on October 29, 2024, with CD8 Technology Services to build an up to $50 million turn-key research and development facility. According to Tevogen, this arrangement, when finalized, will not dilute existing shareholders—a notable consideration for investors in the capital-intensive cell therapy sector.
CD8 Technology Services is associated with Dr. Manmohan Patel, who beneficially owns more than 5% of Tevogen's common stock. The agreement has an initial term of 12 months with automatic renewal provisions and aligns with previously announced topline forecasts.
Specific details of the facility and related services, including scope of work, costs, and timelines, will be outlined in future work orders.
Building on Recent Financing Activities
The facility agreement builds upon Tevogen's financing activities throughout 2024, which marked the company's first year as a publicly listed entity. In August 2024, Tevogen entered into a definitive agreement for a $6 million Series C Preferred Stock investment with a 7.5% annual dividend, convertible into common stock after six months.
Earlier, in June 2024, the company secured access to up to $50 million in financing, consisting of a $36 million line of credit and a $14 million contingent private placement. The line of credit allows Tevogen to access up to $1 million per month at favorable interest rates.
Overcoming Industry Barriers
The cell therapy sector faces significant challenges in establishing manufacturing capabilities, with facilities often requiring substantial capital investment. Tevogen's approach aims to overcome these barriers while maintaining control over critical production processes.
By bringing production in-house, Tevogen can potentially reduce reliance on contract manufacturing organizations (CMOs), which often have long lead times and high costs. This vertical integration strategy could provide Tevogen with greater control over quality, scheduling, and intellectual property protection.
Focus on CD8+ T Cell Therapeutics
Tevogen's pipeline focuses on off-the-shelf, genetically unmodified CD8+ T cell therapeutics for infectious diseases and cancer. CD8+ T cells, also known as cytotoxic T cells, play a crucial role in the immune system's ability to identify and eliminate infected or cancerous cells.
The company's approach differs from CAR-T and other genetically modified cell therapies, potentially offering manufacturing advantages and different safety profiles. Having dedicated in-house production capabilities could be particularly valuable for advancing this specialized platform.
Looking Forward
With the new facility agreement in place, Tevogen appears positioned to accelerate its development timeline while maintaining cost control. The company's financing strategy, combining non-dilutive arrangements with strategic investments, reflects an approach designed to balance growth with shareholder value preservation.
As specific details of the facility emerge through future work orders, industry observers will be watching closely to see how Tevogen's manufacturing capabilities influence its pipeline progression and competitive positioning in the evolving cell therapy landscape.
