The joint company will leverage the cell growth technology developed with investments of approximately 500 million dollars in Pluristem * This is a technological platform that supports the development and production of a variety of cell-based products from different sources, such as: beef, chicken, fish and milk. In the first phase, the venture between Tnuva and Pluristem will develop cultured meat products
Tnuva and Pluristem, the listed biotech company (Nasdaq: PSTI and Tel Aviv) announced today (Mon) the signing of an agreement, under which the companies will establish a joint company, which will deal in cultured protein-based food. The joint company will develop a technological platform for growing cultured meat, with the possibility of expanding also to the field of fish and cultured milk. Pluristem, is an old Haifa biotechnological company, engaged in cellular healing, and develops and manufactures medicines based on cells, extracted from the placenta after birth, based on a unique, patent-protected technology for growing cells in a three-dimensional environment.
The joint company will be based on Pluristem's unique multi-cell technology developed as part of an investment of about 500 million dollars in Pluristem, and will adapt it to the cultured food world. This is a unique and ground-breaking technological platform that supports the development and production of a variety of cultured food products from various sources, including beef, chicken, fish and milk. In the first phase, the joint company of Tnuva and Pluristem will develop cultured meat products.
Pluristem is currently one of the most advanced companies in the world in the production of cells, and this is the first time it will apply its technology in the field of foodtech. Tnuva is the largest food group in Israel, which leads the market of milk substitutes, and is the largest manufacturer and pioneer of R&D in the field, for 18 years. The collaboration between Pluristem and Tnuva will enable the production of the next generation of protein substitutes.
As part of the agreement, Tnuva will invest 7.5 million dollars in the joint company, according to a valuation of 40 million dollars before the money, with an option for further investments of up to 7.5 million additional dollars within a year. Pluristem will provide the technological envelope for increasing the variety of cells as raw material, and Tnuva will provide the R&D envelope for the development of the final products for the consumer, and later the distribution and marketing system for the products that will be sold and distributed in Israel and the world, with Tnuva being the exclusive distributor of the products in Israel. According to estimates, the product will have technological feasibility (POC in 2022, and the first raw product based on cultured meat will be launched as early as 2023.
Yaki Yanai, president and CEO of Pluristem: "The joint venture reflects the global changes and challenges experienced by humanity and meets the need to provide sustainable solutions based on technology. We believe that the strategic partnership with a leading company like Tnuva will combine our innovative technological platform with Tnuva's proven record in creating leading food brands, and together we will translate the promise of cultured meat to reality for consumers. Pluristem's technology is groundbreaking, and as part of Pluristem's strategy, we intend to create additional business collaborations and respond to the challenges that exist today in various industries that require high-quality cells in commercial quantities, alongside continued growth and development of our core activity in the development of cellular medicines.".
Haim Gabrieli, Chairman of the Board of Directors of the Tnuva Group: "The establishment of the joint venture is part of the realization of Tnuva's strategy and vision, to lead the field of protein substitutes in Israel, and to expand in the field on a global level. We partnered with Pluristem, because it is one of the most advanced companies in the world today in the production of cells, and we expect that the cooperation between the companies will revolutionize the field of cultured food and the next generation of protein substitutes. The company will continue to look for investments in partnerships and investments in the world in the field of substitutes, especially in milk substitutes, as part of the Tnuva Group's IPO plans."
Zami Aberman, chairman of Pluristem: "These are two leading companies in their field, each of which has proven experience and tremendous strength in their fields of activity, and the partnership between them could create a better future in the food sector. The collaboration with Tnuva supports Pluristem's strategy to establish partnerships that leverage Pluristem's cell-based technological platform. At the same time as expanding the activity for the joint venture with the Tnuva Group, the company is committed to its core activity of developing and promoting products in the cellular healing field."
Eyal Melis, CEO of Tnuva Group: "As the largest food group in Israel, we also lead the field of alternative protein and were the pioneers in this field 18 years ago. Tnuva also leads the field of food research in Israel and even exports knowledge to the global market. This year, for the first time in Israel, we signed a knowledge sharing agreement with "Migros", the Swiss food giant, for the production of milk substitutes. As Tanuva made the field of alternative protein accessible to every home in Israel, so we intend to bring the gospel of cultured food to everyone and to every plate. These are two leading companies in their field, each of which has proven experience and tremendous strength in their fields of activity, and the partnership between them will be able to create a better future in the food sector."
Melis also noted that "Protein substitutes are a significant growth engine for the Israeli economy as well, when the synergy between Tnuva's established R&D capabilities alongside the advanced production systems and extensive experience in building brands in the food market, together with Pluristem's impressive research and technology capabilities will allow the joint company to be Breakthrough in the international arena of the worlds of alternative protein in general and cultured food in particular".
The substitute meat market is one of the fastest growing in the world, and according to forecasts it is expected to reach 140 billion dollars globally by 2030. Cultured meat products require high quality cells, mass production and competitive costs. Plurisystem has the ability to design and develop technologies and processes for the production of cells in commercial quantities, based on a unique three-dimensional (3D) platform that simulates the cell's natural environment and allows it to multiply. Pluristem's technology is protected by patents and enables the mass-scale production of cells with economic efficiency and consistency. Pluristem has extensive experience in the development and production of pharmaceutical products under the guidelines of the FDA, EMA, the Israeli Ministry of Health and cGMP, knowledge that is an advantage in product development in other areas as well.
Tnuva is a partner in establishing advanced foodtech platforms in Israel, including,FRESH START', An innovative foodtech incubator in Kiryat Shmona, which is a significant part of the ecosystem in the north for start-ups in the food sector. The incubator, which was established in cooperation with the Innovation Authority, the Tempo beverage company, the investment platform Our Crowd and the American investment fund Finistere, specializes in locating and supporting breakthrough Israeli foodtech technologies. Tnuva is a partner in the development of the field of cultured meat and cellular agriculture in Israel, through a new R&D association in cooperation with the Israel Innovation Authority, as well as veteran start-ups in the field of cultured meat, food companies, and researchers from the Israeli academy.
More of the topic in Hayadan:
One response
resurrections