Greek Biotech Investment Under Scrutiny as Orgenesis Secures Full Ownership of Theracell

In August 2022, the Greek government approved a substantial state subsidy for a biotechnology investment that was meant to revolutionize gene and cell therapy in the country.

Then-Deputy Minister of Development and Investments, Nikos Papathanasis, signed off on a €31.7 million grant to the Greek company

Theracell’s plan was ambitious. The company aimed to develop cutting-edge autologous cell and gene therapies by creating mobile production units, known as OMPULs (Orgenesis Mobile Processing Unit Laboratories). These self-sufficient labs were intended to be stationed near hospitals, ensuring personalized treatments could be delivered to patients quickly and efficiently.

The approval of such a significant investment, however, drew attention not only because of its size but also because of who was involved.

Theracell Laboratories IKE was a joint venture, with ownership split evenly between the Sakellaridis family, a Greek group specializing in cell therapies, and Orgenesis Maryland Inc, an international biotech company focusing on advanced gene therapies.

A key figure in Orgenesis was—and still is—Heiko von der Leyen, the husband of European Commission President Ursula von der Leyen.

Enterprise Greece designated Theracell as a Priority Investment of Strategic National Importance, granting it access to fast-track licensing and approval processes. This status also made the company eligible for an investment grant to support industrial research in decentralized Cell and Gene Therapy (CGT) production, though no funds have been disbursed yet.

Alongside the €31.7 million government grant, Theracell's financing package included a €1.9 million tax exemption, €4.1 million in equity funding, €37 million in bond financing, and €10 million in bank loans. The company planned to establish its main laboratory along the Athens-Corinth highway, with construction set for completion by December 31, 2026. As part of its commitment, Theracell also pledged to create 174 new jobs in its first full year of operation.

However, the investment never progressed as planned.

Instead, in July 2024, Orgenesis Maryland Inc acquired the remaining 50% of Theracell from the Sakellaridis family, effectively taking full control of the company. The transaction was formalized on July 12, 2024, when Theracell Advanced Biotechnology Applications SA, the Sakellaridis family’s entity, agreed to transfer its entire stake to Orgenesis. On the

Greek Business Registry, the deal appeared to be a €12,500 transaction, based on the company’s nominal share capital. But in reality, the price was far greater.

According to a company announcement, Orgenesis paid $13 million to acquire the remaining 50% of Theracell. This valuation was determined by an independent assessment, but the financial structure raised eyebrows. Out of the $13 million purchase price, $10.32 million was deducted to cover debt that Theracell already owed to Orgenesis, leaving the Sakellaridis family with a net payout of just $2.7 million, payable in installments until 2028.

The valuation of $26 million for the entire company puzzled many observers, given Theracell’s dire financial situation. By the end of 2023, the company’s financials revealed deep losses. Its equity was deeply negative, standing at -€4.47 million, compared to -€2.53 million in 2022. Its pre-tax losses reached €1.95 million, while long-term debt increased to €5.47 million. Short-term liabilities also surged, rising from just €270,000 in 2022 to €2.28 million in 2023. Even more concerning was the company’s cash position, which collapsed from €137,460 in 2022 to a mere €4,520 in 2023.

Based on these figures, Theracell’s true enterprise value was estimated at around €3.27 million, a figure far below the $26 million valuation used in the sale to Orgenesis. Investors in the United States may have already recognized this discrepancy. Since the announcement of the Greek government’s investment in August 2022, Orgenesis’ stock price on Nasdaq has plummeted by 94.63%.

The key question persists: Why did Orgenesis—and, by extension, Heiko von der Leyen and his associates—assign such a high value to Theracell despite its troubling financials? Was this a misjudged gamble in the biotech sector, an inflated investment, or is there another underlying factor yet to be uncovered?