Knee osteoarthritis treatment delivers Regeneus a A$1.6M milestone payment
Sydney-based clinical-stage regenerative medicine company, Regeneus Ltd (ASX:RGS) today received a non-refundable milestone payment of ¥100,000,000 (approx. A$1.6M) from Kyocera Corporation (TYO:6971).
The payment was made in regards to a non-binding Memorandum of Understanding (MOU) that Regeneus signed with Kyocera on 2 March 2020. The MOU gives Kyocera exclusive negotiation rights to Regeneus’ Progenza platform technology for treatment of Knee Osteoarthritis (Progenza OA) in Japan.
A further ¥100M is payable from Kyocera upon Progenza meeting due diligence criteria. This second milestone payment is refundable if an agreement is not executed.
Regeneus is using stem cell technologies to develop a portfolio of novel cell-based therapies to address unmet medical needs in human health markets with a focus on neuropathic pain, including osteoarthritis and various skin conditions, with its platform technologies Progenza and Sygenus.
Kyocera has commenced their comprehensive due diligence for Progenza and this has progressed positively.
Following the due diligence period, Kyocera will have until the end of July 2020 for exclusive rights to negotiate and enter into a commercial licence for Progenza in Japan.
Regeneus CEO and Executive Director Leo Lee said, “We are pleased to see the MOU timeline progress positively and receive this milestone payment. We will continue to support Kyocera during their due diligence process for Progenza and look forward to updating the market on this front.”