Lorem Vascular agreed to pay up to $531 million for a 30-year exclusive license to commercialize Cytori Cell Therapy for the cardiovascular, renal, and diabetes markets in China, Hong Kong, Malaysia, Singapore, and Australia, as well as initial purchase and equity commitments, the companies said today.
Lorem Vascular will pay Cytori $31 million up front, and up to $500 million as licensing fees tied to achieving undisclosed revenue milestones covering the cell therapy in the Asian markets, for all indications except alopecia and aesthetics.
“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 chairman K.T. Lim said in a statement.
He said Lorem Vascular will launch the therapy immediately in Hong Kong, Singapore, and Australia, with subsequent launches in China and Malaysia planned for 2014, depending on regulatory approvals.
Cytori Cell Therapy is based on the company’s Celution® System, a device that allows patients to access their own adipose-derived regenerative cells at the point of care for a range of injuries and conditions.
As part of their deal, Lorem Vascular agreed to order $7 million in Celution System devices and consumables—a $2 million order placed immediately, and a $5 million order to be placed following regulatory approval in China, where Lorem and Cytori have implemented a regulatory plan and anticipate approval in 2014.
“With the Celution System now approved and available in more than 40 countries, we are uniquely positioned to expand our cell therapy brand by being first-to-market with cell therapy products in new geographies around the world,” Cytori CEO Christopher J. Calhoun said.
Lorem Vascular also agreed to pay Cytori $24 million for 8 million shares of Cytori common stock at $3 per share—with $12 million to be paid within seven days, and another $12 million within 60 days.