Pluristem Therapeutics Pops on Licensing Pact
Pluristem Therapeutics Inc. (NASDAQ: PSTI) announced this morning that it has reached a licensing agreement with United Therapeutics (NASDAQ: UTHR) to develop and commercialize the Israel-based company's treatment for pulmonary hypertension.
Under the terms of the agreement, United Therapeutics will receive exclusive worldwide licensing rights for the development and commercialization of the future product for treating PH patients. Pluristem will retain all manufacturing rights; participate in the pre-clinical and clinical trial activities, as well as provide the commercial grade product.
UTHR will make an upfront payment of $7 million to PSTI, though Pluristem is also eligible to receive regulatory milestone payments to a total of approximately $55 million plus reimbursement of costs for its development and clinical activities.
Shares of PSTI spiked in the premarket; though shares did give back some of the early gains, they did close higher on the session by 5.88%, at $3.15.
Pluristem Therapeutics Inc. is a bio-therapeutics company engaged in the commercialization of non-personalized cell therapy products for the treatment of several severe degenerative, ischemic and autoimmune disorders.
The company is developing a pipeline of products, stored ready-to-use, that are derived from human placenta, a non-controversial, non-embryonic, adult stromal cell source. The placental adherent stromal cells are grown in the company's PluriX three-dimensional bioreactor, which imitates the natural microstructure of the body.
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