Jobs lost as assets of biotech company are sold off
Administrators confirmed 30 jobs have been lost at Leeds-headquartered biotech business, 4D Pharma.
Interpath, which has been handling the administration of the group, confirmed the intellectual property of 4D Pharma, including its patent library, pipeline assets, and bioinformatics platform technology, was sold to CJ Bioscience Inc (CJ).
CJ is an independent corporation of CJ CheilJedang’s RedBio (pharmaceuticals and healthcare) and is interested in accelerating the development of microbiome-based novel drugs.
Interpath said that as it was not possible to sell the 4D Pharma Group solvently, the group’s 30 employees based in Leeds, Aberdeen and Cork have been made redundant.
But it notes the sale will ensure the drug development expertise and innovative technology of 4D Pharma developed over the past 10 years will contribute to accelerating the development of microbiome-based drugs under CJ.
James Clark, managing director at Interpath and a joint administrator, said: “The sale to CJ is a success for science and will see the continued advancement of the research and development that the 4D Pharma Group pioneered.
“This was a complex, cross-border sale to a multinational buyer and, while it is has unfortunately not been possible to transact on a solvent basis, it can still be considered a successful result for creditors.”
A spokesman for CJ Bioscience official said: “Through this contract, we have acquired global-level competitiveness in the development of new drugs based on microorganisms, and we will continue to explore new drug candidates through follow-up clinical trials, in addition to the existing candidates that are awaiting FDA clinical trials this year.”
In a separate deal, the administrators have sold 100% of the share capital of 4D Pharma Group’s wholly owned subsidiary, 4D Pharma León, SLU (León), to Bacthera AG.
Bacthera is a Joint Venture of Chr Hansen A/S and a Lonza Group Affiliate and was set up to serve the needs of the emerging LBP (Live Biotherapeutic Product) industry.
The site in León, Spain, is a live biotherapeutic product manufacturing plant and the sale preserves more than 40 jobs at this location.
Clark added: “Achieving a solvent sale of León is a great result for all involved. It sees more than 40 jobs saved, and allows León to continue to serve the LBP manufacturing market.
“This was a complex sale of a Spanish entity with a UK parent to a Danish and Swiss joint venture firm. Successfully navigating these complexities has led to a good result for creditors.”
