In major news released December 3, 2015, Australian stem cell and regenerative medicine company Cynata Therapeutics (ASX: CYP) stated that it had signed a Letter of Intent (LOI) regarding a future strategic alliance with Regience K.K. for Japan and potentially other Asian countries. Cynata owns the rights to a novel mesenchymal stem cell (MSC) manufacturing process that can produce an unlimited quantity of MSCs from induced pluripotent stem cells (iPSCs) derived from a single donor. This Cymerus technology™ allows for the consistent, scalable production of MSCs in essentially unlimited quantities. By allowing for cost-effective production of clinical grade MSCs, the technology also solves one of the major hurtles currently limiting cell therapy procedures, which is their “sky-high” cost.
The news caught the attention of regenerative medicine investors, causing Cynata’s stock price to jump more than 10% to 40 cents.
Headquartered in Tokyo, Japan, Regience K.K. is a leading company in the field of regenerative medicine, with a focus on utilizing stem cells. The company is uniquely positioned to benefit from Japan’s recently approved system in which the Ministry of Health, Labour and Welfare (MHLW) is able to “temporarily approve regenerative medicine products whose clinical data represent safety and suggestive efficacy.” According to Regience K.K., this recent legislation positions the company to minimize its risks of product development and maximize returns by pursuing several pipelines at low developmental costs.
To learn more the Letter of Intent (LOI) signed by Cynata Therapeutics and Regience K.K., read the full statement from Cynata Therapeutics below.
Cynata Enters Letter of Intent for Strategic Alliance in Japan
Melbourne, Australia and Tokyo, Japan; 3 December 2015: Australian stem cell and regenerative medicine company, Cynata Therapeutics Limited (ASX: CYP), announced today that it has signed a Letter of Intent (LOI) regarding a future strategic alliance with Regience K.K. for Japan and certain other Asian countries.
Cynata and Regience have identified a mutually beneficial business opportunity to enter a business partnership under which Regience would license, develop and commercialise Cynata’s proprietary Cymerus™ therapeutic mesenchymal stem cell (MSC) technology in certain territories, including Japan. During the coming weeks, under the LOI, Regience and Cynata will evaluate and define a commercial relationship, and, if appropriate, enter a strategic alliance agreement.
“We are very pleased to be considering a partnership with Cynata in the development and commercialisation of Cymerus, a very innovative therapeutic MSC technology. Japan is a key market for regenerative medicine and Cymerus represents a truly scalable manufacturing technology for therapeutic MSCs which will be essential in treating major diseases”, said President and Chief Executive Officer at Regience, Masanori Murayama.
“We are very pleased to enter into the LOI with Regience, a company that we believe offers Cynata an outstanding opportunity to take our technology into one of the most dynamic and progressive markets for regenerative medicine,” said Dr Ross Macdonald, Chief Executive Officer and Managing Director at Cynata. “A champion of Japan’s global leadership role in regenerative medicine, Regience has very successfully driven unique opportunities for regenerative medicine based therapeutics in Japan, the world’s second largest country market for pharmaceutical products. Supported by several leaders in the biopharmaceutical space, Regience is building a very promising business in this field and we look forward to reviewing all options for Cymerus”.
About Cynata Therapeutics (ASX: CYP)
Cynata Therapeutics Limited (ASX: CYP) is an Australian stem cell and regenerative medicine company that is developing a therapeutic stem cell platform technology, Cymerus™, originating from the University of Wisconsin-Madison, a world leader in stem cell research. The proprietary Cymerus™ technology addresses a critical shortcoming in existing methods of production of mesenchymal stem cells (MSCs) for therapeutic use, which is the ability to achieve economic manufacture at commercial scale. Cymerus™ does so through the production of a particular type of MSC precursor, called a mesenchymoangioblast (MCA). The Cymerus™ MCA platform provides a source of MSCs that is independent of donor limitations and provides a potential “off-the-shelf” stem cell platform for therapeutic product use, with a pharmaceutical business model and economies of scale. This has the potential to create a new standard in the emergent arena of stem cell therapeutics and provides both a unique differentiator and an important competitive position.
About Regience K.K.