Sydney-based clinical-stage regenerative medicine company Regeneus (ASX:RGS) has received a non-refundable milestone payment of approximately $1.6 million (100 million Japanese Yen) from Kyocera Corporation as set out in the non-binding Memorandum of Understanding (MOU) signed on 2 March 2020.
Regeneus said the MOU gives Kyocera exclusive negotiation rights to Progenza for the treatment of knee osteoarthritis (Progenza OA) in Japan.
The company said a further 100 million Japanese Yen is payable from Kyocera upon Progenza meeting due diligence criteria. "This second milestone payment is refundable if an agreement is not executed," said Regeneus in a statement.
"Kyocera has commenced their comprehensive due diligence for Progenza and this has progressed positively," it added.
Following the due diligence period, Kyocera will have until the end of July 2020 for exclusive rights to negotiate and enter into a commercial licence for Progenza in Japan.
According to Regeneus CEO and Executive Director, Leo Lee, "We are pleased to see the MOU timeline progress positively and receive this milestone payment. We will continue to support Kyocera during their due diligence process for Progenza and look forward to updating the market on this front."