Northwest Biotherapeutics (OTCQB: NWBO) (NW Bio), a biotechnology company developing DCVax® personalized immune therapies for solid tumor cancers, today announced it has leased an existing warehouse on the Company's property in the UK to Commodity Centre Group, a commodity storage and distribution firm domiciled in the UK. The lease represents an initial step in realizing value from the Company's property while the Company continues development of a facility on the site for manufacturing of its DCVax products for the UK and the Europe-wide region.
The warehouse leased to Commodity Centre comprises approximately 275,000 square feet. The term of the lease will be 5 years, with an option for the tenant to discontinue at 3 years and 5 months. The tenant will undertake approximately $1.1 million of repairs and improvements to the warehouse in return for a rent-free period of 5.5 months, and may also undertake further improvements pursuant to the lease. The Company will receive back a substantially refurbished warehouse facility at the end of the lease. In addition, following the rent-free period, the lease is expected to generate approximately $1-1.4 million of rental income per year (plus VAT), for a total of slightly over $6 million (plus VAT) for a full 5-year term. The tenant will also contribute proportionately to insurance and common costs for the overall site. The tenant will pay for its own utilities and costs for use of the warehouse.
The Company's property is located at the crossroads of major rail, truck and air access about 50 miles North of London, on the southern edge of Cambridge, and close to Stanstead airport (which serves as a major air shipping hub). This location also lies in the heart of the leading biotech cluster in the UK, within the "golden triangle" of London, Cambridge and Oxford, and surrounded by major research facilities, research parks, large pharmaceutical companies, medical centers and universities.
The Company acquired the property to serve as its manufacturing and distribution hub for DCVax products for the UK and the Europe-wide region. The Company has been refurbishing and building out another existing building on the property for the GMP manufacturing of its DCVax products. Commercialization of such products, especially personalized products, will require substantial storage, distribution and logistics facilities (including for fleets of dry shippers, the specialized shipping containers used in the industry for frozen biomedical products such as DCVax) in addition to manufacturing facilities.
About Northwest Biotherapeutics
Northwest Biotherapeutics is a biotechnology company focused on developing personalized immunotherapy products designed to treat cancers more effectively than current treatments, without toxicities of the kind associated with chemotherapies, and on a cost-effective basis, in both the North America and Europe. The Company has a broad platform technology for DCVax® dendritic cell-based vaccines. The Company's lead program is a 331-patient Phase III trial in newly diagnosed Glioblastoma multiforme (GBM). GBM is the most aggressive and lethal form of brain cancer, and is an "orphan disease." The Company is also pursuing a Phase I/II trial with DCVax-Direct for all types of inoperable solid tumor cancers. It has completed the 40-patient Phase I portion of the trial, and is preparing for the Phase II portion. The Company previously conducted a Phase I/II trial with DCVax-L for metastatic ovarian cancer together with the University of Pennsylvania.