Regeneus finally signs that Japan stem cell deal, shares jump 81pc
Health & Biotech
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Regeneus (ASX:RGS) has finally done that deal with Kyocera Corporation to develop and commercialise its stem cell treatment Progenza for knee osteoarthritis in Japan.
The stock climbed as much as 81 per cent to an intra-day peak of 20c on Tuesday morning.
The deal gives Kyocera exclusive commercialisation rights in Japan to Progenza for knee osteoarthritis. Kyocera also has the right of first refusal for other indications inside and outside of Japan.
Regeneus will receive $27m in upfront and milestone payments from Kyocera consisting of a $13m upfront payment — of which $2m was received as part of the MOU in March, $14m in regulatory and development milestone payments, and single to high double-digit royalties on all future Progenza sales in Japan.
The company says the upfront payments should provide sufficient cash runway until the commercial launch in Japan, although Kyocera will be responsible for product development, manufacturing and regulatory activities.
Regeneus has had its eye on the Japanese market since it listed in 2013, and has been actively trying to crack the Japanese nut since 2016 when it signed a collaboration and licensing agreement with glass manufacturer AGC Asahi Glass.
AGC terminated the deal in December 2019, opening the way for Regeneus to look for a new partner.
Progenza has already been put through a phase-one study which met all safety and efficacy endpoints and which demonstrated that a single injection into the knee showed significant, rapid and sustained reductions in pain.