Furthermore, Cynata expects to receive $4 million towards the end of this month via the issue of shares to FUJIFILM, as part of a strategic partnership.
The company intends to use the proceeds of the placement and the FUJIFILM investment to accelerate the development of its Cymerus therapeutic mesenchymal stem cell (MSC) technology.
Cynata is developing cellular therapies to treat respiratory disease, cardiovascular disease and a number of other serious conditions.
Earlier this month, the company entered into the partnership with FUJIFILM for the development Cynata’s technologies, including its lead MSC product, CYP-001.
The rights granted to FUJIFILM under the partnership includes an option for the exclusive worldwide licence to manufacture, market and sell CYP-001, in the field of prevention and treatment of graft-versus-host disease (GvHD).
If FUJIFILM exercises the option, an upfront fee of US$3 million is payable which, together with other potential future milestones, totals over A$60 million in potential one-time payments, plus double-digit royalties.
Last month, Cynata had received approval from the Royal Adelaide Hospital for the phase 1 clinical trial of CYP-001 in patients with steroid-resistant acute GvHD.
The company’s share price has more than doubled over the past six months, last trading at $0.70.