- The stock price of Pluristem Therapeutics Inc. (NASDAQ: PSTI) increased by over 18% pre-market today. This is why it happened.
The stock price of Pluristem Therapeutics Inc. (NASDAQ: PSTI) increased by over 18% pre-market today. Investors are responding positively to Pluristem Therapeutics and Tnuva Group (Israel’s largest food producer) announcing the launch of an innovative collaboration to develop, manufacture and commercialize cultured cell-based products for the food industry.
This collaboration started with the incorporation of a new company (NewCo), which will receive exclusive, global, royalty-bearing licensing rights to use Pluristem’s proprietary technology, intellectual property, and know-how, to be used in the field of cultured meat.
Tnuva Group is going to invest $7.5 million in NewCo, according to a pre-money valuation of $40 million, with the option to invest up to an additional $7.5 million over a period of 12 months following the closing. And NewCo will use its own funding and resources to promote its mission with a dedicated management team and staff, and Pluristem will support the establishment, and research and development activities of NewCo pursuant to a services agreement. Tnuva is going to provide the R&D platform to develop consumer products and will receive preferred marketing rights of any developed NewCo’s products in Israel.
Pluristem has the industry-leading capacity for designing, developing, and manufacturing cells for commercial use. And over the last 2 decades, the company developed a proprietary three-dimensional (3D) expansion platform that can produce high-quality cells in a cost-effective manner with batch-to-batch consistency. According to both parties’ estimates and plans, NewCo intends to present its technology Proof of Concept in 2022, with the goal of launching its first raw cultured meat product in 2023.
As part of the collaboration, the parties may expand the collaboration to include cultured dairy and cultured fish products by establishing separate new ventures.
Alternative meat is known as one of the fastest-growing industries in the world and is estimated to be a $140 billion market by 2030 (“The future of food,” 4 May 2021, Barclays news). And affordable cultured food will require mass-produced, high-quality cells at competitive costs.
“Our collaboration with Pluristem is part of the execution of Tnuva Group’s strategy and vision. Tnuva strives to lead the alternative protein industry in Israel and to continue to expand in the industry on a global scale. We chose to collaborate with Pluristem because we believe it owns one of the most advanced cell production technologies in the world. We expect the collaboration between the companies to revolutionize the cultured food industry and develop the next generation of alternative proteins.”
— Haim Gavrieli, Chairman of Tnuva Group
“Both Parties are leading companies in their fields, each with proven experience and tremendous capabilities, and the collaboration between us holds vast potential to lead towards a better future for the food industry. The collaboration with Tnuva supports Pluristem’s strategy to establish partnerships that leverage its cell-based technology platform. As we embark on this collaboration with Tnuva, Pluristem is still dedicated to its core business of developing cell therapy products.”
— Zami Aberman, Chairman of Pluristem
“Over the years, Pluristem has developed one of the most advanced cell manufacturing platforms. During the last year, we made our strategy more precise, with the goal of leveraging our technology and expertise through partnerships and collaborations. Today, we are proud to join forces with a market leader, Tnuva Group, as they bring 96 years of experience in consumer food brands and innovation to the table. We believe that Tnuva’s and Pluristem’s vast experience will support fast and effective development of large-scale cultured meat products, relying on our existing infrastructures and talented teams. This collaboration is the first showcase of Pluristem’s intention to expand its business to verticals that need superior cell expansion proprietary technologies.”
— Yaky Yanay, CEO and President of Pluristem
“Tnuva Group has decades of experience developing and marketing innovative products for the Israeli market. Tnuva leads the alternative protein market in Israel and has recently taken its expertise globally. Just as Tnuva made the field of alternative proteins accessible to every Israeli home, we intend to make cultured food products available to all. The collaboration between two proven pioneers in their fields, each of which with proven experience and tremendous abilities, can create a better future for the food industry.”
— Eyal Malis, CEO of the Tnuva Group
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.