Join our daily newsletter At The Bell to receive exclusive market insights
- Regeneus (RGS) is $5.6 million richer after banking a milestone payment from Japanese electronics business Kyocera
- It’s the latest in a string of payments from Regeneus’ business partner, which sent the company 100 million Japanese yen (around A$1.3 million) in late August
- Ultimately, today’s cash injection is part of a larger commercial agreement, inked in mid-August
- Under that deal, Kyocera is tasked with developing and commercialising Regeneus’ knee osteoarthritis stem cell treatment, known as Prozenga
- Following the announcement, Regeneus shares dropped nearly 7 per cent, trading for 13.5 cents
Regeneus (RGS) is $5.6 million richer after banking a milestone payment from Japanese electronics business Kyocera.
It’s the latest in a string of payments from Regeneus’ business partner, which sent the company 100 million Japanese yen (around A$1.3 million) in late August.
The two companies signed a memorandum of understanding (MoU) back in early March, under which Regeneus gave its partner the exclusive rights to pursue a commercial licence for RGS’ knee osteoarthritis treatment in Japan.
Ultimately, the MoU lead to a licence and collaboration agreement, inked in mid-August, which put Kyocera in charge of developing and commercialising the Regeneus platform.
The ASX-lister’s knee osteoarthritis candidate, known as Prozenga, uses stem cell technology to provide patients with pain relief and combat joint deterioration.
Under the commercial agreement, RGS was set to receive around US$19 million (approximately A$27 million) in milestone payments. As a result, today’s receipt indicates the partnership is progressing as hoped.
Following the announcement, Regeneus shares dropped nearly 7 per cent, trading for 13.5 cents at 3:48 pm AEDT.
