Cynata Therapeutics receives license fee

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Australian regenerative medicine company Cynata Therapeutics (ASX:CYP) has announced it has received the US$3 million relating to Fujifilm exercising its license option in graft-versus-host disease (GvHD).

Exercise of the license option followed the successful completion of the phase 1 clinical trial of CYP001 in GvHD.

Fujifilm has an exclusive, worldwide license to develop and commercialise Cynata’s lead mesenchymal stem cell (MSC) product, CYP-001, for the prevention and treatment of GvHD.

The US$3 million is an upfront fee, which Cynata said it will use to fund the upcoming phase 2 trials in critical limb ischemia and osteoarthritis, could be followed by additional potential consideration of up to US$43 million based on the achievement of product development and commercial milestones.

Cynata will also receive a 10 per cent royalty on all future product sales if the licensed product is successfully commercialised in any country.