Cynata Therapeutics (ASX:CYP) should trade higher after it entered into a license agreement with Cellular Dynamics International (Nasdaq:ICEL).
The agreement provides Cynata with nonexclusive worldwide rights to a clinical grade human induced pluripotent stem cell (iPSC) line manufactured by ICEL.
Cynata intends to use this iPSC line as high quality starting material to manufacture its Cymerus™ mesenchymal stem cell products for human therapeutic use.
Cynata’s proprietary Cymerus technology enables the scalable manufacture of MSCs for therapeutic use.
MSCs derived using the Cymerus technology are manufactured with consistent and reproducible quality and as such do not suffer from the multiple donor-related issues that produce biological variability in MSCs manufactured using other techniques.
MSCs are showing very promising results in clinical trials in a broad range of diseases.
The execution of this license agreement paves a path for commercialisation of the company's technology through access to an iPSC starting material sourced from ICEL, one of the world’s largest human cell technology companies.
The new clinical grade iPSC line from ICEL enables Cynata to manufacture product that is suitable for human therapeutic use as required for planned clinical trials.
This has the potential to create a new standard in the emerging arena of stem cell therapeutics.
During the last quarter, Cynata also entered into a product development and commercialisation partnership agreement to deliver Cymerus stem cells into the lung with Grey Innovation using a novel nebulizer device.
Cynata holds about $5 million in cash.
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