Fujifilm (Japan) is seeking to invest in Australian regenerative medicine venture, Cynata, to accelerate research and development of iPSC-derived regenerative medicine products, signing a basic agreement based on a non-binding term sheet that is expected to lead to a formal contract being signed.
Stem cell and regenerative medicine company Cynata Therapeutics Limited (Australia) and Fujifilm Corporation (Tokyo, Japan) have announced the execution of a term sheet, whereby upon signing of a formal contract, Fujifilm would invest US$3 million in Cynata to accelerate the development of iPSC-derived regenerative medicine products, in return for shares, technology and knowledge access, and product rights.
“We are delighted to execute this term sheet with Fujifilm, one of the most dynamic and progressive companies in the global regenerative medicine space,” stated Cynata Managing Director and CEO, Dr Ross Macdonald. “The proposed acquisition by Fujifilm of shares in Cynata at a substantial premium is a strong vote of confidence in Cynata’s unique technology and we look forward to closing the definitive agreement in the near future.”
In return for the investment, Fujifilm would receive the third-party allocation of Cynata’s new shares to acquire slightly over 10% of Cynata’s total number of shares issued, have an option to acquire the development, manufacturing and sales licensing rights for Cynata’s allogeneic iPSC-derived mesenchymal stem cells, and finally access Cynata’s technologies and expertise for developing regenerative medicine products using these cells.
This includes Cynata’s lead iPSC-derived therapeutic mesenchymal stem cell product, CYP-001, which is expected to be utilized in a clinical trial for graft-versus-host disease in Britain later this year, having received encouraging pre-clinical results and British MHRA acceptance.
If the parties enter into a definitive agreement, Cynata expects it to be finalized late 2016.