Regeneus has entered into a US$16.5m collaboration with AGC Asahi Glass Co., Ltd. (T:5201, OTC:ASGLY) for manufacture of Progenza for the Japanese market. Regeneus and AGC have formed a 50:50 JV for clinical development and commercialisation of Progenza in Japan. We expect the JV to sub-license one or more partners to undertake clinical trials in a number of indications in Japan. We welcome the deal, which strengthens Regeneus’s balance sheet and provides significant validation for the Progenza technology and IP. Our valuation of Regeneus increases to A$120m or A$0.57/share, with the AGC cash and larger addressable market in Japan partly offset by longer timelines and revised assumptions for CryoShot and Kvax.
Deal details
AGC gains exclusive rights to manufacture Progenza for the Japanese market. Regeneus received US$5.5m upfront plus they could earn up to US$11m of milestone payments. A JV was formed between the two companies for exclusive clinical development and commercialisation of Progenza in Japan for all clinical indications. Regeneus retains the rights to develop and manufacture Progenza for markets other than Japan. Regeneus’s technology and experience expanding mammalian stem cell populations in culture will help accelerate AGC’s entry into the manufacture of cell-based therapeutics in Japan.
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