Signs MOU with Kyocera Corporation
Kyocera is a diversified Japanese multinational manufacturer. Their life sciences business includes operating as one of the major Japanese producers of medical and dental products including artificial joints for the knee and hip. Revenues of 1.6 trillion JPY (FY2018) and a market cap of 2.5 trillion JPY listed on the Tokyo Stock Exchange.
Under the MOU, Kyocera will conduct comprehensive due diligence related to Progenza before progressing to a conditional commercial agreement for the Company's lead technology. The agreement gives Kyocera exclusive negotiation rights to Progenza until 31 July 2020, outlines due diligence criteria, payment terms to access subset of research technology and process for a commercial agreement.
Kyocera will gain access to confidential corporate documentation, technical knowhow and clinical data related to Progenza OA for the purposes of its due diligence. The due diligence period is expected to be concluded within 45 days after delivery of the documentation. At the conclusion of due diligence, Kyocera will provide 100,000,000 JPY (approx. A$1.4M) in payment to Regeneus upon meeting the criteria outlined in the agreement. This payment is refundable if an agreement is not executed.
Following the due diligence period, Kyocera will have until the end of July 2020 for exclusive rights to negotiate a commercial license for Progenza in Japan. The intent of the agreement ensures negotiations by both parties are conducted in good faith.
The commercial agreement will adopt suitable market valuation methodologies and metrics to provide Regeneus shareholders with maximum value.
In the MOU agreement, Regeneus has also agreed to licence to Kyocera rights to a subset of research knowhow for a payment of 100,000,000 JPY (approx. A$1.4M).
CEO and Executive Director Leo Lee said, "This Memorandum of Understanding with a company of Kyocera's prominence is an important step in the commercialisation pathway for Progenza OA in Japan."
About Regeneus Ltd
Regeneus Ltd (ASX:RGS) is a Sydney-based clinical-stage regenerative medicine company using stem cell technologies to develop a portfolio of novel cell-based therapies to address significant unmet medical needs in the human health markets with a focus on osteoarthritis and other musculoskeletal disorders, neuropathic pain and dermatology.