Cellect Biotechnology Ltd. (TASE: CLBD), which deals in the selection of stem cells, today reported that it was negotiating a strategic cooperation agreement with Entegris, a leading US company specializing in advanced plastic devices for high-tech industries.
The Cellect share soared on an exceptional turnover following the announcement.
Cellect previously announced it was cooperating with Entegris in the development of a medical kit, one of Cellect's leading products. Now, after feasibility tests for the product yielded positive results, the companies are commencing negotiations towards a binding agreement.
Under the agreement emerging from the negotiations, Entegris will be responsible for completing the design, development, and production of the polymer product, and will bear the development costs. Cellect will be responsible for the biological aspect and human trials.
It has also been agreed that Cellect will retain the intellectual property existing before the project, while new intellectual property, if any, will be jointly owned by the two companies. In the negotiations, Entegris is asking for manufacturing rights in the joint product, and will undertake to supply the product in predetermined quantities and at predetermined prices.
At this stage, the companies are discussing the financial aspects of the agreement, beyond Entegris's share of the development costs. The combined product to be developed in cooperation will be a kit composed of various types of perishable containers, in which the surroundings create a separation between stem cells and mature cells. In the initial stage, the kit is designed for clinical use in bone marrow transplants.
Cellect CEO Dr. Shai Yarkoni said, "The purpose of the agreement is to enable Cellect to invest its resources in a breakthrough already at the current stage, while focusing on its core business - development of technology, because production will be carried out by a high-quality supplier like Entegris."
Yarkoni added, "We believe that Entegris's vast experience in developing and producing sophisticated perishable containers for high-tech industries, combined with the company's trend towards expansion of its life sciences activity, fits in well with Cellect's capabilities and plans. Because of the many markets in which the kit can be used and the product's market potential, Entegris is very interested in acquiring rights to the manufacturing activity in Cellect's production line."
Published by Globes [online], Israel business news - www.globes-online.com - on March 10, 2015
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