Cytori Therapeutics (NASDAQ: CYTX) has entered into a $15 million three-part agreement with Bimini Technologies and its affiliates, Puregraft Technologies and Kerastem Technologies. First, Cytori has sold global manufacturing and commercialization rights for the Puregraft® product line. In exchange, Cytori has received a $5 million upfront payment and will receive up to an additional $10 million from commercial milestones related to future Puregraft® sales. In addition, Bimini has acquired global, exclusive rights to commercialize the Celution® System for Alopecia (Hair Field). Under the commercial agreement, Bimini will be responsible for all clinical studies, regulatory approvals and market development activities for Alopecia and will pay Cytori perpetual royalties on sales. Finally, Bimini has acquired an exclusive option to license Celution® products for the global aesthetics market. The option is effective until December 31, 2013.
“This transaction enables Cytori to monetize a non-core product, Puregraft®, simultaneously increase operational focus on core Celution® cell therapeutic applications and market development, and establish a strategic partnership in the development of new market opportunities in Alopecia,” said Christopher J. Calhoun, CEO for Cytori. “Under this agreement, Cytori maintains certain limited rights to Puregraft® and the related technology and receives an exclusive license from Bimini for cell-enriched applications and future development activities (in exchange for royalty payments on Puregraft® from Cytori to Bimini), which in the aggregate, represent significant market opportunities for Cytori.”
“Our vision is to develop a leading company in the expanding cash-pay aesthetics market,” reported Bradford Conlan, CEO of Bimini. “Puregraft® represents a best-in-class solution that addresses the emerging fat grafting market. Expanding into the Alopecia market adds depth and innovation to our portfolio and increases potential utilization of Puregraft® as an integrated component with Celution® in the hair growth procedure. Additionally, we will continue negotiations to acquire market rights from Cytori for the cell-based aesthetics market beyond Alopecia, which are actively underway and represent the next major step in expanding our portfolio.”