Athenex, Inc. announced that it has entered into a definitive agreement for ImmunityBio, Inc. to assume its leasehold interest in a manufacturing facility in Dunkirk, New York, and certain related assets for approximately $38 million, subject to adjustment at closing. Proceeds from the sale will be used to service the Company's debt obligations and for other general corporate purposes. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2022.

Upon the closing, ImmunityBio will assume all capital expenditure and hiring obligations of Athenex pursuant to its agreements with New York State. Athenex will continue to operate its existing Athenex Pharmaceutical Division (APD) and Athenex Pharmaceutical Solutions (APS) divisions. Athenex has not assigned any of its rights to its corporate headquarters in Buffalo, New York and will retain all of its rights and obligations with respect to its corporate headquarters.

ImmunityBio has entered into a preliminary agreement with Athenex to allow APS the ability to manufacture its 503B products at the Dunkirk facility and the parties plan to enter into a definitive preferred contract manufacturing agreement.