Athersys strikes licensing deal with new Japanese partner

barbara

Pioneer Founding member
By CHUCK SODER
1-8-16

Athersys has a new partner in its quest to break into the Japanese market.

http://www.crainscleveland.com/article/20160108/NEWS/160109866/athersys-strikes-licensing-deal-with-new-japanese-partner

A young Japanese company called Healios K.K. has bought exclusive rights to commercialize Athersys’ stem cell technology for ischemic stroke patients in Japan.

The Cleveland company will receive $15 million up front, and it could earn another $30 million if the product successfully moves through clinical trials in Japan. Athersys also could receive up to $185 million if the product reaches certain sales milestones, plus additional royalties.

The deal also gives Healios the option to license MultiStem for use a few other diseases — Acute Respiratory Distress Syndrome and an “orthopaedic area,” according to a news release announcing the deal. Healios also bought the right to incorporate MultiStem into its own technology for generating new organs.

Japan is a promising market. The government has lowered regulatory barriers for companies developing promising medical technologies that have produced data suggesting that they are safe.

Data suggest that Athersys’ MultiStem technology is safe, but the company is still trying to prove its effectiveness. The technology fell short of its goals in a recent Phase II clinical trial involving stroke patients, but a subgroup of patients who received treatment sooner did appear to benefit, according to Athersys.

Even so, Athersys’ stock price fell after data from the trial was announced, and a few months later Athersys and Chugai Pharmaceutical Co. nullified a previous agreement to commercialize the technology in Japan.

Investors seem to approve of the Healios deal. Athersys’ stock price stood at $1.26 at 11:39 a.m. It had been hovering in the $1 range.
 
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