Pittsburgh biotech firm LyGenesis to merge with AgeX

Pittsburgh-based LyGenesis, a biotechnology company developing cell therapies that enable organ regeneration, is merging with AgeX Therapeutics, which develops therapeutics for human aging and cell regeneration,

LyGenesis recently received U.S. Food and Drug Administration to conduct a Phase 2a clinical trial on the safety, tolerability, and efficacy of its lead cell therapy for patients with end-stage liver disease. The study is expected to begin this year.

The combined company’s pipeline would also include AgeX’s UniverCyte, which uses the HLA-G gene to potentially confer low immune observability to cells to suppress rejection of transplanted cells. In addition, the pipeline would include thymus, pancreas, and kidney regeneration.

Based on the terms of the deal, a newly formed subsidiary of AgeX would merge into LyGenesis. At the closing of the merger, AgeX would issue LyGenesis stockholders a number of shares of AgeX common stock representing two-thirds of the total number of shares to be outstanding immediately following the merger.

Dr. Michael Hufford, the current CEO of LyGenesis, would become CEO of the combined entity. Under the terms of the deal, AgeX’s stockholders would receive an 80 percent economic interest in AgeX’s induced tissue regeneration or iTR technology.

The completion of any merger would be subject to approval by the respective boards of directors of both companies as well as stockholders.

Juvenescence Limited is the largest shareholder of each of AgeX and LyGenesis. The chairman of AgeX’s board, Dr. Gregory Bailey, is the CEO of Juvenescence while two directors of LyGenesis, James Mellon and David Ellam, are the chair and chief financial officer of Juvenescence, respectively.