Biotech firm eyes $5M male infertility stake
Generex Biotechnology Corp., a Toronto company with operations in Worcester, announced it has signed a letter of intent to pay $5 million to acquire a 51-percent stake in MediTemp Ltd., an Israeli company that has developed technology to improve sperm quality in men with infertility.
According to Generex, there were between 2-3 million men diagnosed as infertile in the U.S. and Europe in 2007; 42 percent of those men suffered from varicocele, a common cause of infertility akin to a varicose vein that impedes sperm production.
MediTemp has patented its Varicure product in the U.S., Canada and Europe, which facilitates localized cooling in order to improve sperm quality in men with a condition known as varicocele. The device is compact and portable, and the anticipated per-unit cost is expected to be dramatically lower than traditional treatments for male infertility, such as surgery, creating significant value in the product’s target market, according to a company statement.
The device is also being targeted as a preventative measure for men employed in industries such as transportation and manufacturing where there is a higher risk of varicocele development, Generex said.
The non-binding letter of intent signals Generex’s intent to buy a 51-percent equity stake in MediTemp for $5 million. That hinges on MediTemp’s business plan identifying milestones, a timeline and budget for the product. Generex would also receive royalties on sales of the product.
Generex described its talks with MediTemp as early stage and the company noted that the deal depends on the commercialization of the Varicure product. Valuation and other due diligence exercises must be performed before a formal agreement is executed, Generex said.
This is the third company Generex has expressed interest in acquiring this fall. The company also announced it signed a letter of intent to acquire a 51-percent equity interest in Israeli firm Alfa Rhythm Ltd. on Oct. 6, which would also be a $5 million deal, if executed. On Sept. 30, Generex announced another agreement with Hema Diagnostic Systems LLC, a Florida company. That 51-percent equity interest deal would cost the company $15 million.
In Worcester, Generex operates Antigen Express, a subsidiary that is developing proprietary vaccine formulations for large, unmet medical needs, according to the company website. Antigen Express is located at 1 Innovation Drive in the UMass Medicine Science Park.
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