Cytori Therapeutics and Astellas Pharma have entered into a strategic equity agreement to evaluate the potential of adipose derived stem and regenerative cells for the treatment of serious illnesses for which there is no fundamental treatment.
Astellas will purchase approximately 1.43 million unregistered shares of Cytori common stock at $7 per share for net proceeds to Cytori of $10m.
Cytori provides patients and physicians around the world with medical technologies that harness the potential of adult regenerative cells from adipose tissue.
The Celution System family of medical devices and instruments is being sold into European and Asian hospitals and clinics for cosmetic and reconstructive surgery but is not yet available in the US.
As part of the agreement, Cytori granted Astellas two year right of first refusal for a worldwide research, development and/or commercialisation partnership using Cytori’s products and technologies in the treatment of liver disease; non-voting observer seat on Cytori’s board-of-directors; and participation in a newly formed scientific advisory board.
Cytori and Astellas will further explore a collaboration for an advanced regenerative drug technology.
The premium equity purchase will further support Cytori’s ongoing clinical and commercial activities.
The transaction is expected to close around 13 December 2010 subject to customary closing conditions.