Athersys and Healios to expand their collaboration significantly.
Athersys and Healios announced their intent to significantly expand their existing development and commercialization collaboration. As part of this expansion, Healios is making an approximate $21M equity investment at $1.76 per share, will deposit $10M into escrow, and has entered into a letter of intent, or LOI, with Athersys to expand Healios' license to develop MultiStem products for indications to include acute respiratory distress syndrome, or ARDS, trauma in Japan and the use of MultiStem products in conjunction with organ bud technology and certain ophthalmological indications globally. Healios will also obtain an exclusive option to a license to develop and commercialize MultiStem products for ischemic stroke, ARDS and trauma in China, and obtain certain other rights. In exchange, Athersys would receive committed payments of $35M, as well as additional payments, including milestones and royalties. If Healios elects to exercise its option for a license in China, Healios would pay Athersys license fees, milestone payments and escalating royalties or profit-sharing for each indication.Healios will receive a warrant that will give it the right, but not the obligation, to purchase additional shares of Athersys common stock up until September 1, 2020, subject to certain conditions and limitations. The warrant becomes exercisable if the collaboration expansion becomes effective. The parties will work under the terms of the LOI to execute the agreements necessary to expand the existing collaboration, which is expected to be completed by April 30.
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|Date:||Mar 13, 2018|
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