This is a significant announcement, because apceth GmbH & Co. KG is an extremely well-funded group. Their major shareholders are the Strungmann family, which previously owned Hexal, one of the largest manufacturers of generic pharmaceuticals in Europe. While apceth GmbH & Co. KG is not widely known within the United States, it is a major force within the European Union (EU) biotech market.
Furthermore, the announcement is the second of its kind for Cynata in the past two weeks, suggesting favorable momentum for the stem cell company. The other Letter of Intent (LOI) was signed with Regience K.K. in Japan, on December 3, 2015.
As stated in the press release issued by Cynata Therapeutics:
“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 option and license agreement with apceth GmbH & Co. KG, a leading company using modified MSCs to treat cancer and other life-altering conditions.
The LOI lays the path for a commercial transaction between Cynata and apceth pursuant to which, Cynata would grant to apceth certain rights, to develop and commercialise Cynata’s proprietary CymerusTM therapeutic mesenchymal stem cell (MSC) technology. During the coming weeks, under the LOI, the management teams of apceth and Cynata will evaluate and define the key terms of an option and license agreement.”