Updated on 9 May 2016
Australian stem cell and regenerative medicine company, Cynata Therapeutics Limited has entered into a worldwide license option agreement with Munich-based apceth GmbH & Co KG for the use of Cynata's unique Cymerus technology in combination with genetic modification technologies designed to open up prospective new therapeutic fields to MSCs, particularly the treatment of cancer.
The agreement provides for an immediate upfront cash payment to Cynata, followed by a series of success-based milestones, which could potentially total more than Australian $40m. Royalties on product sales will be also payable to Cynata. Given the substantial unmet medical needs that this relationship seeks to address, the agreement has the potential for substantial revenues to Cynata.
Apceth is presently evaluating Cynata's technology in its in-house cell culture and genetic modification systems as part of an initial collaboration, expected to conclude toward the end of 2016. Further development by apceth will be pursuant to a development plan to be discussed by both parties and incorporated into the definitive license agreement.
"We are delighted to have concluded this license option agreement with Cynata for the further development and eventual commercialization of Cymerus, a very innovative therapeutic MSC technology, in combination with genetic modification techniques. With access now to Cymerus, a truly scalable manufacturing technology for therapeutic MSCs, we are very excited about future off-the-shelf therapeutic products," said Dr Christine Günther, Chief Executive Officer at apceth.
"The combined technologies of Cynata and apceth provide a powerful solution that significantly expands the range of therapeutic applications for MSCs. Through the apceth-engineered enhancements of our Cymerus MSCs we expect to see the development of new treatments that were previously not appropriate for MSCs, one of the most promising and fastest growing areas of medicine today. Outside of the arrangement with apceth Cynata remains free to develop all other applications of its technologies," said Dr Ross Macdonald, Chief Executive Officer and Managing Director at Cynata.