Pluristem Therapeutics Ltd. (Nasdaq:PSTI; DAX: PJT: PLTR) has signed an exclusive out-license agreement with United Therapeutics Corporation (Nasdaq: UTHR) for the use of Pluristem's PLacental eXpanded (PLX) cells to develop and commercialize a cell-based product for the treatment of pulmonary hypertension (PH). United Therapeutics will receive exclusive worldwide licensing rights for the development and commercialization of the future product for treating PH patients. Pluristem will retain its intellectual property - the PLX cells - and all manufacturing rights. It will participate in the pre-clinical and clinical trial activities and provide the commercial grade product.
United Therapeutics will pay Pluristem an initial $7 million and milestone and other payments for a total of $55 million. Pluristem will also be reimbursed for costs of development and clinical activities. United Therapeutics will bear all the costs of conducting the clinical trials for this indication. Following commercialization, United Therapeutics will purchase commercial supplies from Pluristem at a specified margin over Pluristem's cost, and it will also pay Pluristem specified royalties as a percentage from its gross profits generated from the developed product.
"This is an important milestone for our company, as it exemplifies our belief that Pluristem's PLX cells are a platform technology that can be used for the treatment of numerous diseases. This agreement is in line with our strategy of being a state of the art cell manufacturer while maintaining all the production and Intellectual Property rights for future product candidates," said Pluristem chairman and CEO Zami Aberman.
United Therapeutics president and CEO Roger Jeffs said, "Our mission to help patients suffering from pulmonary hypertension has led us to seek companies exhibiting innovative approaches and cutting edge technology, with whom we could partner for developing new therapies. Pluristem's impressive results of their current clinical trials, their strong intellectual property and unique manufacturing capabilities, convinced us to select Pluristem as our partner in developing an important cell therapy for treating PH. We are excited to enter into this partnership and to work alongside Pluristem in advancing this exciting platform."
Pluristem's share price rose 14.8% in premarket trading on Nasdaq today to $3.41, giving a market cap of $124 million, and rose 14.2% by early afternoon on the TASE today to NIS 11.64.
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2011
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