In an attempt to explore the market efficiently, Caladrius Biosciences Inc (NASDAQ:CLBS)‘s wholly-owned subsidiary PCT, LLC has signed a License Agreement and International Collaboration deal with Hitachi Chemical. Caladrius is well-known for its therapeutic product pipeline, whereas Hitachi is an international conglomerate with a rapid-growing portfolio in life sciences field.
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As part of this deal, Hitachi has bought 19.9% equity interest in PCT, LLC for a whopping sum of $19.4 million. Caladrius will retain the remaining 80.1% stake in PCT after this collaboration.
As per the reports, Caladrius seeks to use these proceeds for business expansion and service improvement at PCT in support of general corporate purposes and commercial product launch. Meanwhile, PCT has licensed its know-how and cell therapy technology to Hitachi for cell therapy manufacturing in countries like Japan.
The Pharmaceuticals and Medical Devices Agency has implemented more favorable legislative rules related to regenerative medicine development in Japan than any other Asian country, which makes it an essential destination for PCT to expand its business.
Under this license agreement, Hitachi will make an upfront payment of $5.6 million, excluding royalties and service fees on contract revenue in these countries. Under this agreement, Hitachi takes the responsibility of all the operational and capital expenses related to establishment of Asian business.
PCT and Hitachi have also agreed to carry out a joint venture deal to explore European market in the near future. According to Caladrius CEO David J. Mazzo, PhD, it’s great to sign a collaboration deal with a company like Hitachi Chemical.
The vision of PCT and Hitachi is very much in line when it comes to business expansion and product development. Going forward, PCT and Hitachi will work on many joint projects to make the best use of each others’ expertise and resources. Details of these projects will be announced at a later date.