SAN FRANCISCO, CA--(Marketwired - February 09, 2017) - Regeneus Ltd. (ASX: RGS), an Australian regenerative medicine company, has entered into an collaboration with a major Japanese firm to manufacture its stem cell therapy Progenza, a move that may accelerate approval and that has a pair of analysts optimistic about the company's future.
Included in this article is: Regeneus Ltd.
Regeneus Ltd.'s collaborative agreement is with Asahi Glass (AGC), a major Japanese firm well known for its enterprise in glass, chemicals, high-tech materials, and biotech that is expanding into the regenerative medicine sphere. The agreement, announced on Dec. 29, 2016, calls for an upfront payment from AGC to Regeneus of $5.5 million, with milestone payments totaling $11 million.
The agreement establishes a "50/50 joint venture for exclusive clinical development and commercialisation of Progenza for osteoarthritis and all inflammatory conditions for Japanese market," according to the company.
In addition, the company stated that, "Regeneus will also be entitled, through its 50% interest in the joint venture, to its share of upfront license fees, milestone payments and royalties from sublicensing the development and commercialisation of Progenza for osteoarthritis and all other clinical indications in Japan."
"We welcome the deal, which strengthens Regeneus' balance sheet and provides significant validation for the Progenza technology and IP (intellectual property)," Edison analyst Dennis Hulme wrote in a Jan. 29, 2017 research report.
The partnership with AGC represents a validation of Regeneus' stem cell platform technology, which was "thoroughly reviewed during the due diligence process," Hulme wrote. "This validation, combined with AGC's existing relationships with pharma and healthcare companies, should strengthen Regeneus' position as it engages with potential partners for clinical development and commercialisation of Progenza in Japan (as part of the JV) and in other markets."
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