Cytori Therapeutics (CYTX) isn't divulging much information about the background and capabilities of its new Asian stem-cell therapy partner Lorem Vascular. Thanks to some enterprising work by an investor who shared his findings with me, I think I know why.
Lorem Vascular is a brand new company set up less than two weeks ago by a Malaysian real estate developer, Kian Thiam "K.T." Lim, according to Australian registration records.
Lim has no experience running a healthcare company, according to a biography posted on his real estate company's web site.
Cytori announced the new partnership on Monday night under which Lorem Vascular is supposed to sell doctors in China, Hong Kong and Australia on treating heart disease and diabetes patients with their own stem cells processed from belly fat by a Cytori machine.
Cytori has not conducted clinical trials proving its stem cell therapies are effective or safe treatments for any disease, but regulatory agencies in certain countries still allow the company to sell its stem-cell processing device. Cytori revenue has been declining, however, because there is no proof its stem-cell therapies help patients.
Can Lorem Vascular turn around Cytori's failing business? That's what Cytori wants investors to believe. Lorem Vascular brings "the required resources, market knowledge, dedication and focus to commercialize this innovative treatment and pioneer the introduction of cell therapy products for patients with the most serious conditions," Cytori touted in its Monday night announcement.
But Cytori didn't disclose Lorem Vascular was incorporated as a new Australian company on Oct. 24, according to a registration document filed with the Australian Securities & Investments Commission. An investor tracked down the document and passed it along to me Tuesday afternoon. A Cytori spokeswoman confirmed the document's authenticity.