Mustang Bio, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

License, Clinical Trial and Sponsored Research Agreements

License, Clinical Trial and Sponsored Research Agreements

9 Months Ended

Sep. 30, 2018

License Agreement Disclosure [Abstract]

License Agreement Disclosure [Text Block]

Note 3 - License, Clinical Trial and Sponsored Research Agreements

Research and Development Expenses - All Licenses

For the three and nine months ended September 30, 2018 and 2017, the Company recorded the following expense in research and development for licenses acquired:

	For the three months ended September 30,				For the nine months ended September 30,
($ in thousands)	2018		2017		2018		2017
City of Hope
Manufacturing	$	-	$	-	$	75	$	-
IL13Rα2		-		-		-		250
IV/ICV		-		-		-		125
PSCA		-		-		-		300
HER2		-		-		-		600
CS1		-		-		-		600
UCLA		-		-		-		200
Fred Hutch – CD20		-		300		-		300
St. Jude – X-SCID		1,000		-		1,000		-
Total	$	1,000	$	300	$	1,075	$	2,375

License Agreements

City of Hope

Manufacturing License

On January 3, 2018, the Company entered into a non-exclusive license agreement with City of Hope National Medical Center (“COH”) to acquire patent and licensed know-how rights related to developing, manufacturing, and commercializing licensed products. The Company paid $75,000 in consideration for the licenses to the patent rights and the licensed know-how in addition to an annual maintenance fee. Royalty payments in the low-single digits are due on net sales of licensed products.

St. Jude Children’s Research Hospital

On August 2, 2018, the Company entered into an exclusive worldwide license agreement with St. Jude Children’s Research Hospital (“St. Jude”) for the development of a first-in-class ex vivo lentiviral gene therapy for the treatment of X-linked severe combined immunodeficiency (“X-SCID”). The Company

paid $1.0

million in consideration for the exclusive license in addition to an annual maintenance fee of $0.1 million (beginning in 2019). St. Jude is eligible to receive payments totaling $13.5 million upon the achievement of five development and commercialization milestones. Royalty payments in the mid-single digits are due on net sales of licensed products

Research and Development Expenses - Sponsored Research and Clinical Trial Agreements

For the three and nine months ended September 30, 2018 and 2017, the Company recorded the following expense in research and development for sponsored research and clinical trial agreements:

	For the three months ended September 30,				For the nine months ended September 30,
	2018		2017		2018		2017
($ in thousands)
City of Hope	$	500	$	500	$	1,500	$	1,500
City of Hope - CD123		123		642		387		1,237
City of Hope - IL13Rα2		346		194		849		1,204
City of Hope - Manufacturing		114		-		344		-
Fred Hutch - CD20		255		88		938		88
BIDMC - CRISPR		69		-		69		-
Total	$	1,407	$	1,424	$	4,087	$	4,029

City of Hope Sponsored Research Agreement

On January 3, 2018, the Company entered into a Sponsored Research Agreement (“SRA”) with COH to optimize and develop CAR T cell processing procedures. Pursuant to the SRA, the Company will fund continued research in the amount of $0.9 million for the program, which has an initial term of two (2) years.

Fred Hutchinson Cancer Research Center Sponsored Research Agreement

On March 17, 2018, the Company entered into a SRA with the Fred Hutchinson Cancer Research Center (“Fred Hutch”) related to developing and optimizing processes and systems associated with CD20 cell processing. Pursuant to the SRA, the Company will fund continued research in the amount of $0.6 million during the term of the SRA which expires one year from the effective date.