Updated on 5 November 2013
Cytori Cell Therapy represents a front-line treatment modality that will serve as the centerpiece of cardiovascular, renal and diabetes commercial activities across the region
Singapore: US-based Cytori Therapeutics and China-based Lorem Vascular have formed a partnership to commercialize Cytori Cell Therapy for the cardiovascular, renal and diabetes markets in China, Hong Kong, Malaysia, Singapore and Australia.
Under the terms of the agreement, Lorem Vascular is committed to pay up to $531 million in license fees, opening product purchase commitments and Cytori equity purchases. Cytori Cell Therapy is derived from the company's Celution System, which enables access to a patient's own adipose-derived regenerative cells (ADRCs) at the point-of-care.
Lorem Vascular will pay up to $500 million in fees for a 30-year exclusive license to Cytori Cell Therapy for all indications, excepting alopecia and aesthetics, in the licensed territories in the form of revenue milestones. In addition, Lorem Vascular agrees to purchase the Cytori Celution System and consumables under a product supply agreement. Cytori will receive $24 million in exchange for 8 million shares of Cytori common stock at $3 per share.
"Cytori Cell Therapy will transform the way healthcare addresses the most costly and insidious diseases impacting healthcare today and well into the future," said Mr KT Lim. "This therapy represents a front-line treatment modality that will serve as the centerpiece of our cardiovascular, renal and diabetes commercial activities across the region. Lorem Vascular will initiate an immediate launch in Hong Kong, Singapore and Australia. A subsequent launch in China and Malaysia is planned in 2014, pending regulatory approvals."
"Through this agreement with Lorem Vascular, we have secured a committed partner to bring Cytori Cell Therapy to patients in countries where we have recently received, or are in the process of achieving, regulatory approval," said Mr Christopher J Calhoun, CEO, Cytori.